Futures Trading: What are the short-term factors affecting the price of futures?
The short-term factors affecting commodity price changes are:
1) Impact of changes in supply. Cut products in agricultural products are affected by natural factors such as weather changes, drought, waterlogging, wind and insect pests, etc., which directly affect crop yields. For example, in 1988, a large drought in the western United States caused food prices to soar.
2) The influence of human factors, such as the change of transportation conditions, the implementation of government control, etc. Affected by the harvest season cycle, such as the cyclical changes in the anonymous beef market, the excessive supply after a large number of breeding, there will be a sudden drop in prices; a large number of people slaughter the mother animal, the production plummeted, and after the price rise began to vigorously develop the culture, The price will fall.
3) The coordination of international organizations will also affect the supply. For instance, the Shibo Exporting Countries’ efforts to implement the oil price policy have been effective in stabilizing the price limit. In addition, some transactions reached by various countries also have an impact on the price. For example, the former Soviet Union purchased a large number of agricultural products. The sale of gold has a great impact on the prices of agricultural products and gold; (the global metal net OMETAL.COM) The United States and Japan negotiated and Japan opened the citrus and beef market to the United States. The impact of these international economic news on commodity prices is even more direct. Sometimes the news has just been announced, and the market will respond immediately. In particular, the US government regularly publishes product announcements, which are close to the speculators in the exchanges;
4) The effect of demand on prices. Demand is generally stable relative to the school, but price changes will ring. Demand: prices increase, demand decreases, alternatives appear; prices decrease, demand increases, will change the consumption structure, such as soybean oil prices, people will change the consumption of cottonseed oil Used to consumption of soybean oil.
5) Influence of psychological factors. The influence of psychological factors on prices is a factor that cannot be ignored. When the market expects commodity prices, commodity prices will be affected by market psychology. For example, if the price of a commodity exceeds the level of people's psychological tolerance, it will reduce or stop consumption, or use substitute products to force prices to fall.
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