You can now trade an increased range of US soft commodity markets and the US Dollar Basket online using our award-winning trading platform, PureDeal. Previously only available by calling our 24-hour dealing desk, you can now trade these markets instantly online using live prices.
Dramatic change in commodity prices
Ever considered why commodity prices can be so volatile? The commodities markets are often susceptible to dramatic changes in supply and demand and consequent price volatility, which is what makes them attractive to speculators. Let’s look at the humble cup of coffee and loaf of bread.
Coffee Arabica
Australia, by far, is a nation of coffee drinkers with sales of tea lagging. Australian cafes churning out the popular drink use Arabica coffee beans. Heavy rainfall in Brazil and surrounding countries has seen the price of coffee beans hit a 12-year high on the New York Futures Exchange, resulting in higher wholesale coffee prices. While cafes have been absorbing the price hike thus far, what all coffee merchants are asking is if this will last long, and whether supply will improve?
Chicago Wheat
Wheat prices have also gone through the roof, with benchmark futures up around 60% from June lows. Severe supply shortage due to droughts in Russia, traditionally a major producer, has seen countries scrambling to secure wheat. Dryness in Australia and Argentina has also placed a strain on supply, with France and the US being the only main suppliers.
Markets now available online using PureDeal
You can now trade the below markets instantly online using PureDeal:
Index
- US Dollar Basket
Commodities
- US Cocoa
- Coffee Arabica
- Orange Juice
- Sugar No.11 World
- US Cotton
- Lumber
- Corn
- Oats
- Soyabeans
- Soyabean Oil
- Chicago Wheat
- Rough Rice
- Live Cattle
- Feeder Cattle
- Lean Hogs
- Pork Bellies
Have a view on commodity prices?
Do you have a view on what the short to medium-term trends might be in commodities?
IG Markets offer a convenient way to gain exposure to some of the world's most popular energies, metals, soft and agricultural commodities with the use of CFDs. Our online platform, PureDeal, lets you trade instantly on commodity CFDs, commission free and on competitive spreads, including mini contracts, with access to a range of risk-management tools.
To support your CFD trading, we provide a wealth of research information to building your understanding of global commodity markets. These include our Commodities Update, Autochartist Articles and Market Updates.
If you don’t already have an IG Markets’ account, you can start trading CFDs today by applying online.
Updated: 2/09/10
Disclaimer: The above material does not contain (and should not be construed as containing) personal financial or investment advice or other recommendations. The information provided does not take into account your particular investment objectives, financial situation or investment needs. You should assess whether the information provided is appropriate to your particular investment objectives, financial situation and investment needs. You should do this before making an investment decision based on the material above. You can either make this assessment yourself or seek the assistance of an independent financial advisor. IG Markets Limited accepts no responsibility for any use that may be made of these comments and for any consequences that result.
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