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.
Wheat is adaptable, widely distributed, multi-purpose, and is one of the world's most important food crops. The total cultivating area, production and trade volume of wheat rank first in food crops, with more than one third of the world’s population are consuming wheat as the staple food. Canada, the United States of America and Australia are the world's major wheat producing countries. World trade volume of wheat exceeds the sum of all other grains with manufacturers, processors and exporters mostly use wheat futures to carry out their risk management strategies.
- 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