Which broad category do commodities like coffee, cocoa, and sugar fall under?

The correct choice is that coffee, cocoa, and sugar fall under the broad category of soft commodities. This designation is primarily used to classify commodities that are agricultural in nature and are produced through farming. Soft commodities are characterized by their perishable nature, and they typically include agricultural products like grains, fruits, and livestock, in addition to coffee, cocoa, and sugar.

In contrast, other categories exist to delineate different types of commodities. Energy commodities, for instance, encompass resources like crude oil and natural gas, which are key to the energy sector but do not relate to agricultural outputs. Heavy commodities often refer to mined materials and metals, such as iron ore or coal, which are used in construction and manufacturing. Derived commodities is not a recognized classification for agricultural products and typically refers to goods that have been processed from raw materials.

Understanding these classifications helps in navigating commodity markets, investments, and supply chain logistics effectively.