Soft commodities — cocoa, coffee, cotton, sugar, and orange juice — trade primarily on ICE and respond to weather and crop conditions in concentrated producer regions. A freeze in Brazil, a disease outbreak in West Africa, or a hurricane in Florida can move a contract before any U.S. economic data even posts. There are no micro or mini versions of these contracts.
Soft commodity futures are international markets grown across the globe, with prices driven by weather, disease, political instability in producing nations, and global supply and demand cycles. Most soft commodities are produced in tropical regions, making them particularly sensitive to El Niño and La Niña weather patterns. These markets trade on the Intercontinental Exchange (ICE) and offer compelling volatility for active traders.
Cocoa is the key ingredient in chocolate and is produced primarily in West Africa - particularly Ivory Coast and Ghana, which together account for over 60% of global supply. Cocoa futures are highly sensitive to West African political instability, rainfall patterns, and disease (black pod disease). Seasonal demand spikes around major chocolate-consuming holidays also influence prices. Cocoa hit historic highs in recent years driven by supply shortfalls.
| Specification | Details |
|---|---|
| Cocoa Futures (CC) - Standard Contract | |
| Contract Size | 10 metric tons |
| Tick Size | $1.00 per metric ton = $10.00 per contract |
| Price Quote | US Dollars per metric ton |
| Contract Months | Mar, May, Jul, Sep, Dec |
| Trading Hours | Monday – Friday 4:45 AM – 2:30 PM ET |
| Last Trading Day | 11th business day prior to the last business day of the delivery month |
| First Notice Day | 5th business day prior to the first business day of the delivery month |
| Settlement Method | Physical Delivery |
KC represents Arabica coffee, the premium coffee variety used in specialty coffee. Brazil is the world's largest coffee producer, followed by Vietnam and Colombia. Coffee prices are heavily influenced by weather in Brazil - particularly frost risk in key growing regions - and the Brazilian Real exchange rate. The "coffee season" from May through September is a period of heightened volatility as crop assessments come in.
| Specification | Details |
|---|---|
| Coffee Futures / Arabica (KC) - Standard Contract | |
| Contract Size | 37,500 pounds |
| Tick Size | $0.0005 per pound = $18.75 per contract |
| Price Quote | US Dollars and cents per pound |
| Contract Months | Mar, May, Jul, Sep, Dec |
| Trading Hours | Monday – Friday 3:15 AM – 2:30 PM ET |
| Last Trading Day | 8th business day prior to the last business day of the delivery month |
| First Notice Day | 7th business day prior to the first business day of the delivery month |
| Settlement Method | Physical Delivery |
Cotton is one of the world's most widely traded agricultural commodities, used primarily in textiles and apparel. The US, India, China, and Brazil are the world's largest cotton producers. Cotton prices are influenced by textile demand (particularly from China), competing fiber prices (polyester), US drought conditions in the southern growing belt, and USDA supply/demand reports. The March contract is typically the most liquid.
| Specification | Details |
|---|---|
| Contract Size | 50,000 pounds (approximately 100 bales) |
| Tick Size | $0.0001 per pound = $5.00 per contract |
| Price Quote | US Dollars and cents per pound |
| Contract Months | Mar, May, Jul, Oct, Dec |
| Trading Hours | Monday – Friday 8:00 AM – 2:20 PM ET |
| Last Trading Day | 17th business day prior to the end of the spot month |
| First Notice Day | 5th business day prior to the first business day of the delivery month |
| Settlement Method | Physical Delivery |
Sugar No. 11 is the world benchmark for raw cane sugar prices. Brazil is by far the world's largest sugar producer and exporter, and the Brazilian Real/USD exchange rate has an outsized influence on sugar prices. Sugar is also used for ethanol production in Brazil, creating a direct link between sugar and crude oil prices. India, Thailand, and the EU are other major producers.
| Specification | Details |
|---|---|
| Contract Size | 112,000 pounds (50 long tons) |
| Tick Size | $0.0001 per pound = $11.20 per contract |
| Price Quote | US Dollars and cents per pound |
| Contract Months | Mar, May, Jul, Oct |
| Trading Hours | Monday – Friday 2:30 AM – 2:00 PM ET |
| Last Trading Day | Last business day of the month preceding the delivery month |
| First Notice Day | 1st business day of the delivery month |
| Settlement Method | Physical Delivery |
FCOJ-A (Frozen Concentrated Orange Juice) is the world benchmark contract for orange juice. Florida produces the majority of US orange juice, making the contract highly sensitive to hurricane season (June-November) and freeze events (late November-March). Brazil is the world's largest producer and exporter, and Brazilian crop conditions can move prices significantly. Allowed countries of origin are the US, Brazil, Costa Rica, and Mexico.
| Specification | Details |
|---|---|
| Contract Size | 15,000 pounds of orange juice solids (3% variation permitted) |
| Tick Size | 5/100 of a cent per pound = $7.50 per contract |
| Price Quote | Cents and hundredths of a cent per pound |
| Contract Months | Regular: Jan, Mar, May, Jul, Sep, Nov (Serial: Feb, Apr, Jun, Aug, Oct, Dec) |
| Trading Hours | Monday – Friday 8:00 AM – 1:30 PM ET |
| Last Trading Day | 14th business day prior to last business day of contract month |
| First Notice Day | 1st business day of delivery month |
| Settlement Method | Physical Delivery (US Grade A, min 62.5 Brix) |
CME Lumber futures (LBR) replaced the legacy Random Length Lumber (LBS) contract in 2022 to better reflect modern production and delivery patterns. Lumber prices are tightly correlated with US housing market activity, mortgage rates, and homebuilder sentiment. The contract is sized at one truckload (27,500 board feet) for tailored hedging. Lumber is highly volatile - 10% daily price limits and 5% circuit breakers apply.
| Specification | Details |
|---|---|
| Contract Size | 27,500 board feet (one truckload) |
| Tick Size | $0.50 per thousand board feet (mbf) = $13.75 per contract |
| Price Quote | US dollars and cents per thousand board feet |
| Contract Months | Jan, Mar, May, Jul, Sep, Nov (seven listed) |
| Trading Hours | Monday – Friday 9:00 AM – 3:05 PM CT (CME Globex) |
| Last Trading Day | Mid-month of contract month (varies by contract) |
| First Notice Day | ~22nd–26th calendar day of contract month |
| Settlement Method | Physical delivery to Chicago Switching District (SPF, Douglas Fir, Fir Larch, Hem Fir) |
Open an account at Discount Trading to trade ICE soft commodity futures. Cocoa, coffee, cotton, sugar, and orange juice are all available through the same account.
