Softs and Agriculturals
A wide range of tailored trading solutions
We offer comprehensive execution and clearing services for all key futures and options contracts on European and US exchanges, alongside expert hedging and risk-management assistance and facilitation for softs and agricultural commodities. This remains a core area of expertise, having been our foundation in 1973 as part of Sucden, one of the world’s leading soft commodity trading groups.
We provide our services to corporations, traders, processors, producers, financial institutions and hedge funds, as well as investors active in the commodity futures and options markets.
- Futures and options contracts on European and US exchanges
- Comprehensive execution and clearing services
- Expert hedging and risk management assistance
- Market insights
- Multiple trading solutions
Our sugar, cocoa and coffee teams specialise in execution and clearing services for all key London and New York contracts. They include multilingual individuals with extensive experience and expertise in futures and options. The teams’ overall knowledge and understanding of the softs business, from both a producer and trade-house perspective, is highly regarded in the industry. Our teams of brokers can help tailor hedging strategies to both identify and manage the particular price and market risks you face.
The team provides both voice and electronic futures and options execution and clearing for clients trading metals and other industrial commodities, including energy. They also provide services for softs and agriculturals, FX and other financial markets.
The team works for producers, consumers, fabricators and traders, financial institutions and hedge funds, as well as investors in the commodity futures and options markets. Skills and experience range from open-outcry trading floors, commodity brokerages and banks, to operations and support roles. Given the nature and complexity of the markets, particularly the London Metal Exchange (LME), the desk provides additional liquidity, also enhanced by direct access to our ring team.
With the extraordinary industrial and financial market growth in China and surrounding regions, we have expanded our footprint in Asia. Today we have arguably the largest team of Chinese-speaking LME specialists in London, supported by experts at our Hong Kong subsidiary, ensuring round-the-clock support and essential local knowledge. We now serve a wide range of clients with differing needs, from those looking to fix and protect against commodity price risks, to financial institutions looking to access a wide range of financial instruments.
The Fund Services team is made up of seasoned market professionals with decades of expertise that will help you navigate and understand the array of products and services available.
We provide specialist access to over 20 exchanges covering listed financial, equity, commodity and FX futures and options, as well as access to cash fixed income and OTC FX. Offering both electronic (FIX) API and voice-execution solutions, we provide trade assistance and liquidity sourcing for an extensive range of markets through a single access point.
We have a strong history of dealing with a wide range of financial institutions, both as clients and as counterparties. This includes banks, proprietary trading firms, hedge funds, pension funds and asset managers. We can customise solutions for execution and clearing, sourcing liquidity, or providing prime brokerage services.
From the outset, we have evolved our solutions and services to meet a wide variety of the need of large corporations, taking care to fully understand their aims and objectives. Our long-term corporate clients take comfort from our capabilities, financial strength and stability, together with the support of the Sucden Group.
Read our short coffee crop update, with commentary on recent price activity, and coffee market forecasts to take advantage of market movements. The coffee industry witnessed turbulent prices last year, affecting both Arabica and Robusta contracts. The industry remains reliant on Brazil and Vietnam, accounting for 58% of the total blend. Although the weather is still a concern, we believe that most of the damage has been done, and the expectations of a super crop are likely to fade. In our view, there is no shortage of coffee overall, but there are gaps in certain regions creating uncertainty regarding coffee accessibility.
Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. As attention focuses on major economies' central banks for signs of the onset of monetary easing, significant activity is unfolding in Central Europe, where policymakers have already begun to lower borrowing costs. These shifts in monetary policy are mirrored in currency fluctuations against the euro, with the Polish Zloty (PLN) emerging as the top performer against the euro over the past six weeks. Meanwhile, the Czech Koruna (CZK) and Hungarian Forint (HUF) have been among the weakest. With market forecasts anticipating the European Central Bank's initial interest rate reduction in June, what does the next month hold for the currencies of the Visegrad Group countries?
During the last quarter, the markets expected the Fed to begin a cutting cycle, which caused the dollar and Treasury yields to decrease. This, along with predictions of China's recovery in 2024, boosted the prices of base metals by the end of the year. However, in Q1, the situation has changed. The US economy has shown robustness in terms of the labour market and consumer performance, which has led the market to price in the probability of cuts further down the curve. Additionally, despite continued support from the government, Chinese pessimism has yet to subside. In the upcoming months, macroeconomics will continue to play a crucial role in driving the day-to-day momentum, particularly in the aluminium and copper markets. Structural and cyclical indicators will also come into play when assessing the path for base metals performance. COT positioning, spreads, and stocks will drive the general price trend in the first half of the year while anticipating an economic recovery and easing monetary policy pressures in the latter half of the year.
Our analysts provide an insight into the Electric Vehicle and Battery Material Market. They give an update on how the energy industries in major regions are transitioning towards renewable alternatives, new policies to support EV sales, and a fundamental outlook for Nickel, Cobalt, and Lithium. With the end of 2023 approaching, we look back at how the electric vehicle has performed amidst growing fears of the global economic recession and what trends are set to accelerate into the new year.
China held the National People’s Congress in early March, drawing thousands of delegates to the biggest reshuffle of China’s economic policy team. In this note, we look at the impact of the latest NPC meeting to help gauge the mark of new policies on longer-term economic prospects from the region.