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Agricultural Commodities

Definition

Agricultural commodities are raw products from farming, such as grains, livestock, and softs like coffee or sugar. These goods form the basis of numerous global markets and are frequently traded on futures exchanges, influencing both traditional finance and digital asset ecosystems. Their price discovery mechanisms and supply-demand dynamics can serve as indicators for broader economic trends, impacting investment strategies and the valuation of related digital assets. Understanding their role is crucial for interpreting news concerning inflation, supply chain stability, and the performance of tokenized representations of real-world assets.