Commodity futures or commodities are one of the oldest assets to invest in. For hundreds of years, people have been selling wheat, corn, sugar, oil, etc. The main feature of such assets is their physical existence. That is, we do not buy paper, but invest in concrete, real goods. On the one hand, this is an important advantage, but on the other hand, it imposes a number of specific capabilities that must be taken into account.
The first feature is the susceptibility to cycles. For example, almost every year on the eve of the cold season, the energy sector is becoming more expensive. The reason here is not that the energy supply goes up or down, but that there is an increased demand for it.
The second aspect of commodities is the simplicity of forecasting the trend, especially on medium-term contracts. Because the work is done with physical objects, commodities are influenced by the external environment. Therefore, if the summer is arid, it is obvious that the harvest of wheat, coffee and other crops dependent on summer moisture will be weak.
|Instrument||Spreads (as low as)||Leverage (up to)||Trading Hours (GMT)|
|Corn||0.70 (USD)||1:100||00:05 - 12:40, 13:35 - 18:10|
|Wheat||2.50 (USD)||1:100||00:05 - 12:40, 13:35 - 18:10|
|Coffee C||0.65 (USD)||1:100||08:16 - 17:29|
|Sugar no.11||0.10 (USD)||1:100||07:31 - 16:59|
|Soybean||2.00 (USD)||1:100||00:05 - 12:40, 13:35 - 18:10|
|Cotton no.2||1.00 (USD)||1:100||01:05 - 18:15|
|Rice||0.06 (USD)||1:50||00:05 - 12:40, 13:35 - 18:10|
|Cocoa||10.00 (USD)||1:100||08:46 - 17:29|