Allan Elstein, and Nestor Croce, each have more than 18 years of experience as sovereign floor traders and brokers of soft commodity
futures and options.
The Murabaha-based ADIB Soft Commodity
Note is Shari'a-compliant and is offered to investors as an opportunity to a return based on the expected performance of three commodities - cotton, corn and sugar.
As soft commodity
prices slide, so copper, tin, zinc and nickel prices are all heading south.
IntercontinentalExchange(R) (NYSE:ICE) operates the leading global, electronic marketplace for trading both futures and OTC energy contracts and the leading soft commodity
These products are now listed on the ICE trading platform, which is also home to the ICE Futures US soft commodity
futures and options that include Sugar 11, Cocoa, Coffee, Cotton and Frozen Concentrated Orange Juice contracts.
Fertilizer prizes depend largely on food (soft commodity
) prices, which stimulate or discourage farmers to grow more crops.
The Commodity CFDs are expected to create greater access to energy, metal, soft commodity
and grain markets as well as offer more flexibility.
On this basis, investing in an agricultural land fund can be seen as an interesting play on the rise in soft commodity
The coffee futures market is just another soft commodity
now, traded solely as a financial instrument, and right now it has been generally following the market moves of other similar commodities.
Forward grain prices are significantly ahead of projections, most of them have had a decent harvest and, in the longer term, there is a growing feeling that soft commodity
prices will rise."