Trading CFDs on Wheat
Among the most frequently traded products on the global markets is wheat, a staple foodstuff across the planet that is used in a variety of manufacturing procedures. In virtually all societies globally, from east to west, wheat is a vital product amongst the most typical food forms, and also the market for purchasing wheat has been dominated by several massive multinational players that rely on consistent, affordable supplies of wheat to conduct their enterprise. The commodity market is a very volatile market and is affected by various factors such as weather, global demand that paves the way for exciting opportunities for commodities trader
Wheat futures are used as hedging instruments that provide opportunities. They also provide opportunities for portfolio diversification. Wheat futures prices are expressed in US dollars per 100 bushels (1 CFD contract on Wheat stocks comprises 100 bushels; one bunch includes 150-100-bushel equal units of wheat).
Instrument – Wheat
Currency – USA
Spread – $0.25 over market
Margin – 3.00%
Trading hours (GMT) – 01:00-13:44 & 14:30-19:14
What influences the price of Wheat?
The demand for wheat in the global market supports the fluctuating price of wheat. It has many advantages like lower labor requirements and water, which make it a more desirable crop for farmers. The demand for wheat is has been rising for decades, with the vast majority of the increasing demand coming from emerging markets.
A farmer needs a favourable condition to grow crops as these crops have been developed in places where the weather is more favourable to them. Any impact of climate change is very likely to contribute to prices as the yields will be impacted by any shift in weather.
Hedge against US Dollar and Inflation
Wheat is a way to bet on a weak US dollar and inflation that is high. Since commodities like wheat are priced in US dollars. In the last few decades, monetary policies that have kept the US dollar poor have been affirmed by the US Federal Reserve Banks. US policymakers want this weakness to encourage consumer spending and borrowing and to strengthen US exports. A continuation of those policies will help wheat rates and can spur inflation.
Advantages of trading Wheat CFD with Capital Street FX
As most of the traders speculate on the price movement and won’t need wheat in physical form. This is why the most useful instrument for traders in the contract for difference (CFD). This allows traders to buy or sell without owning the underlying instrument. It also gives freedom to trade a particular market from either side, i.e., and a trader can go long or short according to his strategy. CFD is a very cost-efficient instrument. The brokerage on CFDs is very low.
Why trade Wheat CFD with CAPITAL STREET
- BROAD RANGE OF MARKETS- Access to the popular commodities markets, including energy, metal, and agricultural products.
- CSFX offers you our stat of the art platforms and range of trading tools
- Trade using Margin- Get greater exposure to the marketplace with a small deposit and spread your capital using margin.
- Automate your trade facilities and direct access to the market
- Safety of funds