The commodities market is a diverse and complex financial market, comprising of various types of commodities such as metals, energy, agricultural products, and soft commodities. Soft commodities, specifically, include raw materials that are grown such as coffee, cocoa, cotton, sugar, and soybeans. It is a market where traders can buy and sell contracts of these commodities in order to profit from the price fluctuations.

Just like the foreign exchange market, the commodities market is also traded on a variety of different markets such as futures, options, and contracts for difference (CFDs). One of the most popular markets for retail clients is the CFD market, where traders can easily buy and sell contracts without actually owning the underlying commodity.

The commodities CFD market is dominated by large international banks who provide their own quotes via electronic trading systems, and the spot market serves as the point of reference for these quotes. As such, the prices are not uniform across the market.

Commodity prices are influenced by several factors such as supply and demand, geopolitical events, weather patterns, and economic indicators. For example, the price of coffee may be affected by weather conditions in Brazil, the world\’s largest coffee producer, or the demand for soybeans may be affected by the growing trend of plant-based diets.