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.
Corn is one of the crops yields the highest volume and is a most widely distributed food source. The total crop acreage of corn ranks number 3 in the word, followed wheat and rice. The main purpose of corn is as forage for livestock, as edible oil and ethanol refining. Corn is widely used in the manufacturing process of plastics, solvents and other industrial or household goods. The corn futures market is one of the world's major futures markets, with daily turnover in hundreds of millions. This not only helped to drive the prices changes of corn, but also contributed to stabilize the market. Many speculators in corn futures make profits in the price volatility of this market.
- 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