Trading Soft Commodities

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Soft commodities include sugar, cocoa, coffee, orange juice and cotton.

Sugar

people using sugar for more than two thousand years ago, when it was originally reserved for the very rich. Today, sugar is one of the most heavily traded commodity in the world.

Sugar commodity contracts expiring in March, May, July and October and one point on the movement of goods CFD contract is worth USD5.60. So if the trader decided to go long on a sugar contract, and its value rose by 25 points, he would receive from USD140 (USD5.60 per point x 25 ).

Cocoa

Kaka revealed a native of Central America for more than three thousand years, which is a luxury for the rich. Today, most of the world’s cocoa is grown in the Ivory Coast, Ghana, Indonesia, Brazil, Ecuador and Nigeria. This means that when the turbulence in these regions, the price of cocoa is growing because of the expected supply disruptions.

cocoa contracts expire in March, May, July, September and prosincu.Jednom we move into the CFD contract goods worth USD5.

Coffee

Coffee was originally discovered more than two thousand years ago in Ethiopia. From Africa, coffee has made ​​its way to the Middle East and cafes, where he met with travelers who spread its use outside the region.

Coffee contracts expire in March, May, July, September and December. Coffee commodity trading contracts are worth USD1.88 per point movement.

orange juice

Orange juice is a new commodity market — such as orange juice is traditionally consumed as fresh juice, it’s a short shelf life, and was therefore vulnerable to price shocks due to supply disruptions

Freeze orange juice was started in 1940, then became the industry standard, longer shelf life, turning it into a tradeable instrument.

Cotton

Pamuk has discovered more than five thousand years and was one of America’s first cash crops. Cotton is a very influential commodities because of the wide range of uses and contributes a large amount of commodity trading.

cotton contracts expire in March, May, July, October and December, a one point movement of a contract worth USD2.50.

How to trade commodities

commodity trading is usually done with futures contracts, which are agreements that the goods will be delivered at some point in the future to the agreed cijene.Količina, quality, time and place of delivery of all aspects of a standardized contract, only the variable cost

Unlike stock trading, which can be bought in the hope that share prices will rise and the trader will profit from the sale of shares at a higher price, may be short sales, which means that a trader can make profit in a falling market by selling a futures contract and buying back at a lower price.

If the dealer decided to go for coffee prices fell by 50 points, he would profit from USD94 (USD1.88 x 50 points ).