Futures popular despite low prices
29 June 1999
Futures popular despite low prices
AGRICULTURAL futures remain popular despite low prices in the commodities sector, reports the Financial Times.
Commodities such as coffee, cocoa, grains and livestock are trading at around historic lows, but benchmark futures contracts are attracting “increasing interest.”
Volumes on the Chicago Board of Trade are running head of last years record.
Wheat futures recorded a 22% rise in total volumes between January and May, compared with the same time last year.
Volumes of rapeseed futures on Matif, the French derivatives exchange, jumped 86% in the first five months of the year.
There is a similar story in cocoa, coffee and sugar.
Analysts quoted by the report believe futures contracts are being supported by investors nervous about inflation.
Commodities are seen as a major vehicle for hedging any adverse developments.
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- Financial Times 29/06/99 page 32