Futures are one of the most prominent aspects of financial contracts where two parties are involved wishing to purchase and sell certain financial assets at a predetermined price and time in the future. So, it does not matter if the market price will be altered in this period, underlying assets must be exchanged at the set price. Consequently, wheat futures are standard and exchange-traded contracts when buyers and sellers agree on a specific amount of wheat to be sold in the future, but with a predetermined price. Wheat is a very popular crop in the United Kingdom, so it should come as no surprise that the majority of traders are willing to get their hands on it.
You have the opportunity to trade Wheat Futures on two exchanges – Euronext Milling, NYSE Euronext (Euronext), and Chicago Board of Trade (CBOT). Euronext Milling wheat futures offer units of 50 tonnes in order to trade these assets, and you will see dollars and cents per bushel in contract prices. As for CBOT wheat futures, they are also quoted in dollars and cents per bushel, but they are traded in lot sizes of 5000 bushels, which is a total of 136 metric tons. Euronext wheat futures are also traded in lot sizes, but only with 100 tonnes, and prices are provided in pounds and pence per metric ton there.
How To Trade Wheat Futures
As you can tell, futures are hedging resources for financial assets since it helps both consumers and producers avoid the risk of losing a lot of money. People who produce wheat have the possibility to set a price and blockade it for their product, which is usually done for short-term contracts. When it comes to huge businesses, they carry out long-term hedging strategies for the wheat they produce in order to lock in the selling price and sell the product to consumers.
Moreover, apart from producers and big businesses, wheat products are purchased by so-called speculators who think that they can get profits from the wheat price movement in the future. Generally, they buy what products when the price is low and wait for some time until they generate positive numbers. On the other hand, they start selling wheat when the opposite happens and the price experiences a downfall. Hence, it is a pretty simple process and all you need to do is look for reliable brokers that allow the trading of agricultural products.
Where To Trade Wheat
As a UK citizen, you have a wide range of options when it comes to brokers. The good news is that the majority of them allow the trading of agricultural-related commodities such as wheat, live stocks, food and industrial crops, and many others. We would like to recommend this list of brokers to UK residents since they provide weekly and daily agro market analysis. What’s more, you will be informed about essential activities in terms of crop report updates, intra-day analysis, price movements, and so forth. Let’s dive into these brokers deeper and explain all their advantages!
Capital.com is a relatively new broker in the market, but it has quickly gained a vast number of customers. In fact, there are 500,000 people registered on the website and the daily trading volume is more than 530 billion dollars. The broker is ready to furnish you with all the crucial data about Wheat futures in order to accurately predict future prices. It will be useful for both traders who are willing to execute short-term and long-term processes in regard to wheat. Capital.com is an excellent place if you wish to enjoy market-leading spreads with zero commissions and carry out trades on over 6000 commodities, currency pairs, shares, indices, and cryptos.
XM is another great destination for every UK citizen who wants to trade wheat. It is one of the oldest brokers that started operating back in 2009 but has managed to retain huge popularity to this day. The broker provides an array of services in terms of wheat futures, so this is the best place if you wish to get a thorough strategic view of market movements. The broker provides transparent and 100% secure trading for every visitor irrespective of their net capital or the size of investments since everyone is treated equally here. You have a chance to trade Forex, CFDs, commodities, energies, stocks, metals, and indices on this platform.
Pepperstone is another high-class broker offering tremendous services to UK citizens. The main goal of the creators was to develop a website where people could trade in the global markets, and we want to note that they have certainly accomplished this wish. The broker will teach you how to get the best prices for agricultural commodities, including wheat futures and how you can correctly operate in the commodity market. Moreover, You will come across more than 700 trading instruments such as stocks, commodities, and CFDs. What’s more, Pepperstone contains the industry’s leading trading tools such as MT4, MT5, and cTrader which can be accessed with all kinds of devices.