Agriculturals
Agriculture is one of the world's largest industries and the prices of its products like corn and soybeans are sensitive to supply changes, which can be at the mercy of changeable weather conditions.
Our agricultural contracts are based on CBOT® Futures.
Binary Options
- Your profit or loss is known from the outset: a Binary Option can only settle at zero or 100
- The ability to benefit from any market condition, even when the underlying is quiet
- Open a position based on corn or soybeans futures with low collateral
Bull Spreads
- Opportunities for limited risk, leveraged positions on agricultural futures
- Strictly limited risk with no slippage and relatively low collateral
- Potential for hedging against existing agricultural futures positions
Example
Corn
Corn
Despite technological advances, farmers ultimately remain at the mercy of nature. Crops can be severely affected by extreme temperatures, as well as droughts and floods.
From a demand perspective, the greatest pressure on corn prices is the growing human population. Between 1950 and 2010 the world’s population increased from 2.5 billion to just short of 7 billion.
- The U.S. produces about 40% of the world’s annual corn yield
- Corn is one of the world's most widely produced staple foods
- Corn is used in the production of biofuels such as ethanol
Example
Soybeans
Soybeans
Soybeans have an increasingly wide range of uses, from food and animal feed to various industrial applications such as cleaning products.
Historically, soybeans also have had broad price fluctuations, being sensitive to a variety of factors including changes in climate, consumption trends and supply structure.
- The U.S. and Brazil are the world’s leading soybean producers
- Soybean meal and vegetable oil account for 85% of production
- 98% of soybean meal is processed into animal feed
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