Traders may choose not to take physical delivery of commodities and instead deal
in Futures contracts.
Coffee
Seasonal influences have a significant impact on coffee prices. There is no
peak supply of coffee in the globe at any one period of year. Coffee consumption
decreases in the summer and increases in the winter. Prices rise throughout the
winter months.
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Sugar
Sugar is one of the most traded commodities since it is utilised all over the
world. Traders should be aware that sugar is also a component of biofuels. The
demand for biofuel grows year after year, yet the supply is not always sufficient.
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Cocoa
LCocoa is traded in futures contracts on many exchanges to manage price
risk for consumers and for producers to secure selling or purchase prices. The profit
amounts to the difference between the price of the shares at the time of purchase and
the current price.
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Cottton
Cotton's pricing fluctuates much because of its need for water. When
supply is restricted, prices might rise. China is the world's top producer and
consumer of cotton, dominating the production rankings. India is in second place,
with the United States in third.
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