Soft commodities, which refer to agricultural goods such as coffee, sugar, cocoa, grains, livestock, and other products, are the essentials of everyday life. Regardless of current trends, primary and secondary agricultural goods (e.g., fiberboard from rice straw; industrial chemicals and bio-fuel from sugarcane; and milk and protein from soybean) will always be in demand.
Over time, we’ve seen the prices of these agricultural products rise and become volatile; thus, it’s vital for growers and producers to have a tried and tested system in place that will reliably help them better understand and manage the entirety of their trading and risk management operations. By doing so, they’re effectively maximizing their business profits and minimizing their losses.
Each agricultural commodity is unique. So, you can’t simply choose a CTRM (Commodity Trading and Risk Management) software for agriculture or soft commodities and assume it will work out of the box for your company. Prices for different kinds of commodities are measured in varying units – tons, bales, bushels, etc. What’s more, each commodity type has different rules for trading and physical characteristics. For example, cocoa and coffee both have unique characteristics that your CTRM should be able to manage.
Let’s look at the example of coffee: people price coffee based on various factors such as origin, certifications, grades, and flavor patterns. Sometimes, merchandisers and traders use different units of measurement than terminal markets. Finally, trading practices may differ based on the type of trade and geographical region.
Aside from coffee trading, cocoa trading is another complex example. People trade cocoa on many exchanges in different currencies. What’s more, attributes like bean size, infestation, and certification affect pricing.
It’s clear that you’ll want a CTRM system that can price your commodities correctly and take into account various commodity characteristics.
Regardless of whether you handle grains and oilseeds (corn, wheat, soybeans, palm oil); livestock (feeder cattle, lean hogs, live cattle); dairy products (milk, cheese, butter, dry whey); or other agricultural goods, merchandisers, farmers, grain elevators, producers, crushers, breeders, and traders need to have a comprehensive system in place that handles everything from growing to processing to the final product.
ComFin Software’s “Comcore” is your all-in-one CTRM solution for trading, storing, and transporting all your agricultural goods. It’s a complete solution for agricultural commodities and can handle the entire lifecycle of your commodities, from the source all the way to the customers.
At ComFin, we provide you with high-quality, reliable CTRM software solutions for capturing all trade-related data, managing and mitigating your financial risks, tracking, and reporting to guarantee the long-term success of your organization.
ComFin is regarded as the world’s leading commodity trading and risk management company. With over two decades of experience and a strong capability in developing tailor-made solutions that solve your specific problems, we can help you reduce your financial risk while maximizing profits. Our team is fully prepared to help you overcome your challenges, streamline your business processes, and improve your trading activities – all specific to the context of the agricultural industry.