7. Softs and Agriculturals

Question 1

Software commodities include what four items

Answer 1

Sugar, coffee, coca and frozen Orange juice

Question 2

Name 4 of the main derivatives exchanges

Answer 2

1. Chicago Mercantile Exchange (CME)
2. Intercontinental Exchange (ICE)
3. Euronext Derivatives
4. London Metals Exchange (LME)

Question 3

Price influences on soft commodities are impacted by?

Answer 3

Supply and Demand

Question 4

How can supply be summarised?

Answer 4

The amount of a particularly commodity being provided to the market.

Question 5

What are agricultural commodities?

Answer 5

Grains, seed oil and livestocks

Question 6

What can affect supply of soft and agriculturals?

Answer 6

Land, natural factors (weather, disease) production cost and government intervention.

Question 7

What factors impact demand for softs and agriculturals?

Answer 7

Wealth, growth and tastes

Question 8

When do governments implement subsidies?

Answer 8

When they want to increase supply

Question 9

When do governments introduce tariffs.

Answer 9

When they want to reduce supply

Question 10

As a general rule, assuming demand stays they same, complete the following

Answer 10

Supply ⬆️ Price ⬇️
Supply ⬇️ Price ⬆️

Question 11

Assuming supply stays the same, complete following

Answer 11

Demand ⬆️ Price ⬆️
Demand ⬇️ Price ⬇️

Question 12

What are important associated costs with softs and agriculturals

Answer 12

Holding costs, such as warehouses. Spoilage is a key concern in softs and agriculturals.