Agricultural Commodities: Wheat, Corn, Coffee & Sugar

What is an agricultural commodity?

Agricultural commodities are farm products traded in standardized quality and quantity. They change hands as futures contracts on exchanges like Chicago (CBOT), New York (ICE) and London. What consumers see as a supermarket price is the tail end of trends that formed in these markets weeks earlier.

Key agricultural commodities

• Wheat: The primary carbohydrate source for the world. Russia, US, EU, Ukraine and Canada are the top producers.
• Corn: Used for food, animal feed and ethanol (biofuel).
• Soybeans: A source of oil and protein (soybean meal). Chinese import demand drives the price.
• Coffee (Arabica & Robusta): Brazil and Vietnam are the biggest producers; frosts and droughts spike the price fast.
• Cocoa: Côte d'Ivoire and Ghana supply the bulk of global production.
• Sugar: Made from sugarcane (Brazil, India) and sugar beet.
• Cotton: The basic input for the textile industry.
• Livestock / meat: Cattle and hog futures trade on the CME.

What moves the prices?

• Weather: Drought, frost, floods and El Niño / La Niña cycles hit harvests directly.
• Planted acres: USDA reports (WASDE) are among the biggest market movers.
• Energy prices: Fertilizer and transport costs depend directly on oil and natural gas.
• Geopolitics: Disruptions to routes like the Black Sea corridor or the Suez Canal break supply.
• Dollar strength: As dollar-priced assets, a stronger dollar raises prices in importing countries.
• Biofuel demand: Demand for ethanol and biodiesel diverts corn, soy and sugar to non-food uses.

Why track them?

• Leading indicator of food inflation.
• Critical data for emerging-market central banks.
• Drives ag stocks (Bunge, ADM, John Deere).
• Shapes currencies of exporters (Brazil, Argentina, Ukraine).

Live tracking

Track live prices of agricultural and other global commodities on the NexPrices Commodities screen.