Soft Futures and Options Trading
Exotics Trading Markets

Coffee futures C contract is the world benchmark for Arabica coffee. The contract prices physical delivery of exchange-grade green beans, from one of 19 countries of origin in a licensed warehouse to one of several ports in the U. S. and Europe, with stated premiums/discounts for ports and growths.

Cocoa futures contracts are the world benchmark for the global cocoa market. The contract prices the physical delivery of exchange-grade product from a variety of African, Asian and Central and South American origins to any of five US delivery ports.

Cotton futures is a 126-year-old contracts call for 50,000 lbs. of cotton. Cotton typically is planted in April or in May, and the first few weeks of development are crucial. China has led the world in cotton production for years. Uzbekistan is the world's second leading exporter.

Orange juice futures contracts are the world benchmark for the global frozen concentrated orange juice market. The contract prices physical delivery of U.S. Grade A juice (with grading performed by the U.S. Department of Agriculture), instore in exchange licensed warehouse in several U.S. delivery points. Allowed countries of origin are the U.S., Brazil, Costa Rica and Mexico.

Sugar futures No. 11 contract is the world benchmark contract for raw sugar trading. The contract prices the physical delivery of raw cane sugar, free-on-board the receiver's vessel to a port within the country of origin of the sugar.

Softs are a diverse market to say the least. The lack of a market, such as energy or livestock, means no one broad source for fundamental data covers these products, not even the USDA. There is no clear definition of the softs market. Cotton, sugar, coffee and cocoa certainly belong, but orange juice and lumber are somewhat fringe members. Even the traditional four are linked with little more than sporting either colors identical or opposite their counterparts. Softs are the black and white of the industry indeed.