2024-01-04 14:58:25
pair Marcelo Teixeira
Trading volume of sugar, coffee and cocoa futures on the Intercontinental Exchange (ICE) ICE.N rose sharply in 2023 as companies seek to hedge growing global supply chain risks , the exchange said in a report on Thursday.
The ICE said the average daily volume (ADV) traded for sugar contracts in 2023 increased by 21% from the previous year and was a record.
It said the average daily volume for cocoa contracts in 2023 rose 14% from 2022, while the average daily volume for coffee futures jumped 9% last year.
The exchange said in its report that the findings reflect the role derivatives markets play in hedging risk “in the face of increasingly complex supply chain dynamics”
Financial players’ investment flows into agricultural commodities have also increased, as they have sought to diversify their allocation by seeking higher returns.
Agricultural commodity prices have been highly volatile over the past three years due to transportation and demand disruptions due to the global avian flu pandemic and armed conflicts, as well as adverse weather conditions. to agricultural production.
Cocoa futures in London hit their highest price last year, while robusta coffee hit its highest price in at least 15 years and raw sugar hit its highest level for 12 years.
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