Agricultural futures are the oldest futures listed in the market. Over the years, agricultural futures have been one of the mainstream products in the international futures market. trading varieties. There are various types of products in agricultural futures, and agricultural futures have become the core of the related industrial chain in the world’s agricultural production, circulation and consumption.
AETOS provides popular agricultural futures contracts including corn, soybeans, wheat, cotton (No.2), Coffee C, sugar (No.11), cocoa, soybean oil and live cattle.
The U.S. cattle and beef industry is a big and risky business. Various factors including weather conditions and disease will influence the supply and demand for livestocks. Live Cattle futures serve commodity producers and users seeking risk management and hedging tools, alongside funds and other traders looking to capitalize on the extraordinary opportunities these markets offer.
- Weather conditions
changes in weather conditions will directly affect the crop yields
- Seasonal factors
Cyclical production of agricultural products affects the price of agricultural futures
- Cost-benefit of the produce
Cost-benefit situation will affect the decisions of production scale for the upcoming year among the producers
- Financial and monetary factors
Interest rates and exchange rate fluctuations often cause the fluctuations o n the quotes of commodity futures
- Government policies including import and export tariffs
Government Incentives will stimulate production and thus driving down the prices, and vice versa