The commodity groups
Agricultural commodities (grains and softs)
4 min
Agricultural commodities — the things we eat, drink and wear — split into grains/oilseeds and softs.
Grains and oilseeds
- Soybeans (soja) — among the most important globally, crushed into meal (animal feed) and oil. Brazil is the world's largest soybean exporter, with China the dominant buyer.
- Corn (milho) — feed, food and ethanol. Brazil's second (safrinha) crop has made it a major corn exporter too.
- Wheat — the staple grain, heavily traded on CME and dependent on harvests in the US, Russia and Ukraine.
Softs
- Coffee (café) — split into higher-quality arabica (traded on ICE in New York and on B3) and robusta. Brazil is the world's largest coffee producer, so a Brazilian frost or drought moves the global price.
- Sugar (açúcar) — Brazil is the top exporter; uniquely, Brazilian mills can swing cane between sugar and ethanol depending on prices, linking sugar to the energy market.
- Cotton (algodão) — a fibre crop where Brazil has become a leading exporter, competing with the US and India.
What makes ags distinctive
- Seasonality — prices follow planting, growing and harvest cycles. The same commodity behaves differently in March than in September.
- Weather risk — a single frost or drought can dominate the year's price action.
- Storability — grains store for months; this shapes the futures curve. Coffee and cotton store well; livestock and some softs do not.
For a Brazilian investor, the ag complex is the most familiar entry point — these are the country's signature exports.
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