Which of the following best describes "soft commodities"?

The term "soft commodities" specifically refers to agricultural products that are cultivated rather than mined or extracted. These commodities are typically grown in farms and include items such as corn, wheat, coffee, sugar, and cotton. This classification contrasts with "hard commodities," which include mined resources like gold and silver, or extracted natural resources such as oil and gas.

Selecting the correct option highlights the fundamental distinction between commodities based on their source, emphasizing that soft commodities are fundamentally tied to agricultural production. This understanding is crucial for anyone studying commodities markets, as it underlines the specific characteristics and market behaviors of agricultural goods compared to their mined or extracted counterparts.