Tropicals and Softs are renewable but are annually influenced by climate changes, diseases, and water shortages. Increased demand for these commodities has attracted futures investment, a trend that will certainly continue in the future.
Cocoa Futures- The precious value of the cocoa bean has long been known. Today, it is recognized that cocoa futures represent the benchmark for the world cocoa market.
Coffee Futures- Futures contracts for Grade 3 washed Arabicas have been around for decades and are popular with tropicals and softs traders.
Cotton Futures- Cotton has been used in textile production for over 7000 years. The United States is responsible for one third of cotton that is traded and is the world's leading exporter in this cash crop.
Lumber Futures- Although lumber has been utilized for construction for thousands of years, large-scale lumbering did not occur until the Industrial Revolution.
Orange Juice Futures- Frozen concentrated orange juice (FCOJ) is a relatively new product, and therefore, an even newer available futures contract. FCOJ futures have been known for their versatility and volatility, and it has gradually gained popularity among traders.
Sugar Futures- Brazil is, without a doubt, the highest producer of sugar to date. Today, sugar granules are derived largely from sugar cane or sugar beet, but regardless of the source, the end product is the same.