Features of the agricultural goods market
Agricultural products are one of the elements that are important not only for individual households, but also for economies of different countries as a whole. In addition to the food industry and animal husbandry, they are increasingly used to produce alternative types of fuel, construction and packaging materials, plastics, as well as in the medical industry.
Many events that change the balance of supply and demand are affected on the dynamics of prices for agricultural products. Difference contracts (CFD) allow Earn at the fluctuations in prices for agricultural products without the actual supply of goods.
Features of the agricultural goods market:
Demand grows with population growth and overall well-being, while the proposal depends on the season and weather factors. This allows you to confidently determine the trends of price movement. Trade in agricultural products is tied to specific stock exchanges that have their own work schedule. The agricultural market – urgent, contracts are traded on it, having a certain period of action.
Main Agricultural Goods
Corn Wheat Soy Coffee Sugar Cocoa Coffee Robusta Coffee Robusta Cash
Example of Transaction
Corn Contract – Tool recommended by traders for medium and long-term trading. As a rule, corn prices grow from minimal values during the harvest period, to the maximum marks in the spring before starting sowing work. The tool actively responds to forecasts and news about the condition of the crop Grains in key countries of manufacturers and exporters. The greatest volatility by the tool is observed during the release of the monthly report of the US Department of Agriculture Wasde USDA.
Prices for corn
Corn prices (CORN) are installed in US dollars per 100 bushels (bushel = 60 pounds). In periods of growth, the average price increase is + 13.3% per month. The most liquidated goods from 15:30 to 19:15 GMT. At the same time, maximum volatility is recorded, often accompanied by GEP at the opening sessions. Recommended comfortable capital for working with wheat – $ 2500 for medium-term transactions and $ 10,000 for long-term trading.