CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
What are agricultural commodities?
Agricultural commodities are raw, farmed products that are grown or raised for commercial sale. They’re typically grouped into two major categories: soft commodities like coffee, cocoa, and cotton, and grains/livestock like corn, soybeans, wheat, and cattle.
These products are traded on commodity exchanges such as the Chicago Board of Trade (CBOT) or Intercontinental Exchange (ICE). Futures contracts are the most common instruments used, although some brokers also offer CFDs (contracts for difference) for easier access.
In our experience, the appeal lies in their tangible value. These aren't just financial abstractions, they’re essential to global life. That connection often leads to strong price trends tied to real-world supply and demand.
Where can I trade agricultural commodities?
Agricultural commodities can be traded via:
- Futures: On exchanges like CBOT (CME Group) or ICE.
- CFDs: Offered by many online brokers. Easier access but may lack depth.
- ETFs: Instruments like DBA or CORN offer indirect exposure via futures-based holdings, though long-term performance can diverge due to factors like roll costs and tracking error.
Ensure your broker provides access to reliable market data and, ideally, offers risk management tools such as guaranteed stop-losses.
If you’re new, we suggest starting with demo trading or using micro lots in CFDs before moving on to full futures contracts.
CFDs vs. Futures: What’s better for trading agricultural commodities?
When it comes to trading agricultural commodities, you’ll likely face a choice: CFDs or Futures. Both have pros and cons, and the right fit depends on your goals, experience, and account size.
Futures
Futures are standardized contracts traded on formal exchanges like the CBOT (Chicago Board of Trade). They offer deep liquidity, low spreads, and transparency.
Pros:
- Lower transaction costs for large volumes.
- Tight spreads and regulated exchanges.
- High transparency and real-time volume data.
Cons:
- Higher capital requirements (margin and contract sizes).
- Complex rollover mechanics.
- Less forgiving for beginners.
Futures can be intimidating at first, and contract sizes (like 5,000 bushels of corn) require large capital. Rollover deadlines can also trip you up.
CFDs
CFDs are offered by online brokers and mirror the price of the underlying commodity. You don’t own the actual asset; instead, you’re speculating on price movements.
Pros:
- Lower minimum deposits.
- Flexible position sizing (micro and mini accounts).
- Easier for beginners to learn and execute.
Cons:
- Wider spreads than futures.
- Subject to broker’s pricing and execution quality.
- Often no centralized market depth.
For new traders, CFDs are usually the better place to start. They provide access to agri-markets without requiring huge capital. Just be mindful of leverage as it cuts both ways.
If you’re serious and well-funded, futures may provide you with more control and tighter execution. But if you’re learning the ropes or trading small, CFDs can be your friend.
Why trade agricultural commodities?
There are three main reasons to trade in agricultural commodities: diversification, volatility, and inflation protection.
- Diversification: Trading agricultural commodities allows you to hedge against movements in other asset classes. During currency or stock volatility, agri-products often move independently.
- Volatility: Weather events, crop disease, and export bans can move prices rapidly. For short-term traders, this can mean opportunity.
- Inflation hedge: When inflation rises, food prices often climb too. Agricultural commodities can help preserve purchasing power.
Over the years, we’ve found these markets require patience and a solid understanding of macro events, but when conditions align, the payoff can be substantial.
Most popular agricultural commodities to trade
Not all agri-commodities are equally liquid or tradable. Here are the most commonly traded ones:
- Corn: Huge U.S. production and strong demand from food and biofuel industries.
- Soybeans: Tied to both food production and animal feed.
- Wheat: Global staple, sensitive to geopolitical disruptions (e.g., Ukraine-Russia).
- Coffee: Volatile and influenced by Brazilian harvests and African output.
- Sugar: A soft commodity with wide industrial uses.
- Cotton: Heavily influenced by fashion cycles and weather in the U.S., India, and China.
- Cocoa: Price sensitive to political instability in producing countries like Ivory Coast and Ghana.
We usually recommend starting with corn or soybeans thanks to their high liquidity, seasonality, and the availability of mini futures contracts.
How does seasonality affect agricultural commodity prices?
Seasonality is everything in agriculture. Unlike forex, which trades 24/5 year-round, agricultural commodities follow planting and harvest cycles.
For example:
- Corn and soybeans: Prices often rise in spring (planting season) amid uncertainty, and fall during harvest (late summer/fall).
- Coffee: Brazilian frost season (June–August) can trigger sharp price spikes.
- Wheat: Prices may rise if winter kills off crops or delays planting.
We’ve found that mapping trades around seasonal cycles can significantly improve timing. Seasonal charts and historical production reports can help you anticipate demand/supply shifts.
What are the risks of trading agricultural commodities?
Commodities aren't risk-free, and agricultural products bring a unique set of challenges that traders need to understand. One of the biggest factors is weather dependency. A single drought, flood, or unexpected frost can send prices rising or falling, often with little warning. Geopolitical risk also plays a role; export bans, trade sanctions, or conflict in a key producing country can lead to extreme price volatility. Many agri-commodities experience unpredictable moves, especially during harvest season or major crop reports.
Leverage compounds that risk. Many brokers offer high leverage on commodity CFDs, which can increase gains but also increase losses if you're on the wrong side of a move. Another factor to consider is market access. Futures markets may have limited hours or experience gaps between sessions, which can disrupt stop-loss orders or trigger slippage.
Start small, use defined stop-losses, and stay up-to-date with key global agricultural reports like those from the USDA or FAO. Awareness is your best defense in a market shaped by both nature and geopolitics.
Best strategies for trading agricultural commodities
The best strategies blend fundamental analysis, technical timing, and seasonal awareness.
- Trend-following: Identify long-term weather-related or geopolitical-driven trends.
- Spread trading: Go long one commodity and short another (e.g., corn vs. soybeans).
- Breakout strategy: Use technical levels around harvest times to catch price surges.
- News-based trading: React quickly to USDA reports or drought/frost alerts.
Also, don’t ignore positioning reports like the COT (Commitment of Traders).
How do I choose the right broker for agricultural commodities?
Picking the right broker is one of the most important steps in trading agricultural commodities. First, check what markets the broker actually offers. Some only support CFDs on a few softs like coffee or sugar, while others provide full futures access through exchanges like CME. If you're aiming for more control or longer-term trades, having access to real futures is a big plus.
Next, assess pricing and execution. Agricultural commodities can move fast, especially during weather events or USDA reports, so you’ll want tight spreads, low slippage, and reliable trade execution. If you're using CFDs, make sure the broker's pricing accurately tracks the underlying futures market and isn’t loaded with hidden markups.
Regulation should never be overlooked. Stick to brokers licensed by top-tier regulators like the FCA, ASIC, or CFTC. Trust matters, especially in fast-moving markets where you're exposed to leverage and overnight risk.
Finally, consider tools and learning support. A good broker will provide access to seasonal reports, crop calendars, and COT positioning data. They’ll also let you start with small position sizes, which is essential while you're still learning how these markets behave.
When in doubt, start with a demo account. It’s the best way to test both the broker and your strategy without risking real money.
Top Agricultural commodity exchanges:
- The Chicago Mercantile Exchange (CME) Headquartered in Chicago and offers a range of contracts apart from commodity contracts.
- Intercontinental Exchange Inc. (ICE) USA based exchange.
- Multi Commodity Exchange (MCX) Based in Mumbai, India.
- Dalian Commodity Exchange (DCE - based in China and founded in 1993.
- Shanghai Futures Exchange (SFE) based in Shanghai, China. The only agricultural commodity currently traded on this exchange is natural rubber.
- Nasdaq Commodities OMX - based in New York. Seafood is the only agricultural commodity traded on this exchange.
- BMF Bovespa - based in Sao Paulo, Brazil. This exchange trades a wide range of agricultural commodities.
BrokerNotes.co 2025 Overall Rankings
To recap, here are our top forex brokers for 2025, sorted by Overall ranking.
Popular Forex Guides
More Forex Guides
Popular Forex Reviews
Methodology
At BrokerNotes.co, our data-driven online broker reviews are based on our extensive testing of brokers, platforms, products, technologies, and third-party trading tools. Our product testing extends to the quality and availability of educational content, market research resources, and the accessibility and capabilities of mobile platforms and trading apps. We also dive into each broker’s trading costs, such as VIP rebates, inactivity fees, custody fees, bid/ask spreads, and other fee-based data points.
Steven Hatzakis, an industry veteran with decades of experience in the forex market, leads the BrokerNotes research team. All BrokerNotes content is researched, fact-checked, and edited by the research team.
All websites and web-based platforms are tested using the latest version of the Google Chrome browser. Our Desktop PCs run Windows 11, and we use MacBook Pro laptops running the latest version of macOS to test trading on the go. We test mobile apps and products using iPhones running iOS 17 and Samsung devices running Android OS 14.
Note: The online brokers on our site provide the ability to trade forex in one or more ways, such as non-deliverable spot forex (i.e., rolling spot contracts), contracts for difference (CFD), or other derivatives such as futures. The availability of specific markets or features will depend on your country of residence and the broker's applicable brand or entity that services your account(s).
Forex Risk Disclaimer
There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more about foreign exchange risk.
About the Editorial Team
Founded in 2014 and acquired in 2021, BrokerNotes.co provides unbiased forex broker reviews and ratings to help traders and investors find the best broker for their needs. With over 60 brokers reviewed, our editorial team has published thousands of words of research to help our readers make informed choices.
Joey Shadeck is the Content Strategist and Research Analyst for BrokerNotes.co and ForexBrokers.com. He holds dual degrees in Finance and Marketing from Oakland University, and has been an active trader and investor for close to ten years. An industry veteran, Joey obtains and verifies data, conducts research, and analyzes and validates our content.
Hannah Smith is a Staff Editor at BrokerNotes.co. With a background in SEO and years of experience in digital media, Hannah is focused on creating high-quality, data-driven content that helps investors make informed decisions. With a master's degree in English from North Carolina State University, she brings a strong foundation in writing, research, and editorial strategy to her work.
Charles Schwab
Swissquote
OANDA
AvaTrade
Plus500
FXCM
Pepperstone
XM Group
Admirals
FP Markets
IC Markets
FxPro
Tickmill
Markets.com
BlackBull Markets
Fineco
Vantage
ThinkMarkets
DooPrime
HYCM (Henyep Capital Markets)
HFM
Trading 212
Questrade
ActivTrades
Trade Nation
Moneta Markets
BDSwiss
TMGM
Eightcap
Spreadex
MultiBank
ACY Securities
easyMarkets
Exness
VT Markets
IFC Markets
RoboForex
Octa
IronFX
Axi
Earn
ATFX
iFOREX
FXPrimus
FXOpen
Markets4you
GBE brokers
Alpari
FXGT.com
Xtrade
Libertex (Forex Club)
TopFX
LegacyFX
