Convergence about the commodity asset classes in the world is becoming increasingly clear. At HTC Group, we actively develop our presence in important agricultural origins and destination markets. The current product coverage includes primary food and feed pellets, oilseeds and vegetable oils. Our main trading desks are located in Geneva and Singapore. From Antwerpen we serve the European markets, the main origin markets of North and South America and we also offer services to the most important import regions of Southeast Asia.

Although the trade in soft commodities was mainly a physical enterprise – since most of these raw materials traditionally grow in the tropics and have to be shipped elsewhere for consumption – it has increasingly become a market for financial trading and speculation. The main soft and agricultural commodities traded are wheat, maize, soya beans, sugar, palm oil and rice and to a lesser extent orange juice, coffee, cocoa, cotton and wood. Soft and agricultural raw materials are renewable and yet crises can occur that affect the supply balance. The futures market was started by traders who traded cereals almost 150 years ago. Since then traders who were mainly farmers, use futures as a means of capturing prices while managing their stocks. As in any market subject to the laws of supply and demand, price trends influence long-term trading activities and influence the growing world markets. However, soft and agro markets are relatively stable because the growing world population needs basic food. In addition, cereals are used not only for human consumption, but also for animal feed, the manufacture of articles and the production of biofuels. In fact, many of the soft and agricultural raw materials such as sugar, grains or palm oil are used to produce ethanol for biofuel. Ethanol production is expected to increase significantly and by 2022 biofuels production is expected to consume a large amount of world production of vegetable oils, grains and sugar. Because of this synergy with energy and the increasing global trend towards renewable energy, many energy companies have started to develop a trade in soft and agricultural raw materials. Although the majority of the trade in these raw materials is still divided over very few large companies, more and more players are entering the market.