Agricultural commodities are raw farm products that can be processed for individual and industrial use. They include crops such as corn, cocoa, rubber, etc; oilseeds such as soybean oil; and perishable livestock products such as milk. Almost every living being in the world depends on agricultural products for survival. Agricultural commodities such as grains, oilseeds, livestock, and soft commodities are food for humans and ingredients for industries.
Agricultural commodity trading is gaining attention globally because of the increasing demand for the products. Nonetheless, not all agricultural products are traded in the commodity markets. Here are the categories of agricultural commodities, also called agricultural futures and options, traded at the commodity market:
There are many agricultural futures and options under agricultural commodities; however, the three most widely traded agricultural commodities will be discussed in this article. The top 3 agricultural commodities are wheat, maize/corn and soybean.
Wheat is one of the most widely traded and consumed foods globally, particularly in developed countries. Wheat is the second most-consumed grain in the world. It has a high nutritional value and is used in making different foods across the world, including bread, cookies, and swallow (an African solid meal eaten with soup).
Wheat is an important and valuable commodity in the commodity market. The price of wheat is usually higher than other commodities because of economic and trade factors. Some of the factors affecting the price of wheat in the commodity markets are the US dollar fluctuations; increasing demand and limited supply; population growth in the demanding countries; climate change; and varying weather conditions.
Wheat futures and options are some of the best options in the agricultural commodity market. Therefore, you should try trading wheat.
Maize is a cereal crop cultivated to contribute to foods for humans and animals, fuel production, and other industrial uses. The cultivation and use of corn originated from Central America, and till today, the US remains the highest producer of maize. Maize is used mainly for the production of animal feeds and as an ingredient in fuel production. Maize is an important commodity in the commodity market because of the increasing demand for consumption and ethanol fuel.
The price of maize is higher than some grains in the commodity markets but it is sometimes related to the price of wheat. The price of maize is usually affected by some economic and trade factors such as demand for ethanol or fuel production, especially as every economy seeks sustainable ways of energy production; fluctuations of the US dollar; and climate change and weather conditions.
Soybean is a leguminous crop grown for its high nutrient contents. It serves as a vital source of protein for human and animal feed. Soybean is also a great source of oil as in soybean oil, and livestock meal as in soybean meal. The cultivation and use of soybeans originated in Asia.
In the commodity market, soybean is an oilseed commodity and the third most traded agricultural commodity. Soybean is traded mainly for its oil benefit used in industries and meal products used in the formation of livestock feeds. The price of soybean in the commodity markets is also affected by trade and economic factors that affect grains commodities such as wheat and maize, as described previously.
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