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.
Cocoa has been considered as beverage consumption for hundreds of years, its usage has not been identified until the Dutch manufacturer found that cocoa can be made into chocolate in 1821. The largest cocoa producing country is Cote d'Ivoire, followed by Brazil and Ghana. Cocoa’s major consumption countries are USA, Germany, Russia, Britain, France, Japan and China. Nearly 50 percent of global cocoa produced in West Africa along the Ivory Coast and Ghana.
The cocoa contract is the world benchmark for the global cocoa market. The contract prices take reference from the physical delivery price in Exchange. Cocoa will be shipped to 5 ports in USA from of Africa, Asia, Central and South America.
Weather changes and virus harm are the most direct natural factors affecting cocoa bean production. In addition, the district disputes and government chaos in the main producing countries in Africa persisting for years, which further increased the uncertainty and price volatility in cocoa production.
- 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