Energy Commodities: hard commodities in the energy sector include natural gas and heating oil. Oil prices fluctuate due to a variety of reasons, including supply and demand for the raw natural resource crude oil, which is refined into gasoline.
Precious metals: such as palladium, gold, and silver are also considered hard commodities.
Commodities agriculture: Commodities agriculture are grown and raised on farms and ranches throughout the world. Palm oil, cocoa, live cattle, and wheat are all examples of these soft commodities.

Commodities are broadly classified into two categories: hard and soft commodities.

Hard commodities are natural resources that are extracted or mined. They include metals like gold, silver, and copper, as well as energy resources like oil, natural gas, and coal. These commodities are often used in industrial processes and energy production.

Soft commodities are agricultural products or livestock. This category includes grains like wheat, corn, and rice, and livestock such as cattle and hogs. It also encompasses commodities like coffee, cotton, and sugar, which are grown and harvested.

Both types of commodities are traded on global markets, influenced by factors such as weather, geopolitical events, and supply and demand dynamics. Their prices can be highly volatile, reflecting these underlying factors.