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 main sources for sugar production are sugar cane and sugar beet. The major commercial source are crystallized sugar cane and sugar beet , a natural sweetener. There are about 110 countries around the world are in the production of sugar. Most sugar produce are consumed in the original countries, only about 30% of the produce are for export. The largest sugar consumer includes India, the EU, Brazil, USA and China. Sugar consumption in developed countries is basically stable, the price changes will not significantly affect consumption, while sugar consumption in developing countries fluctuates with the income change. Climate, policies, production costs and product competitiveness are the main factors affecting the price of sugar.
The Sugar No. 11 contract is the world benchmark contract for raw sugar trading. The contract prices are based on the price of raw cane sugar, as well as taking reference on the free-on-board price of the receiver’s vessel from the country of origin.
- 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