psychologic factor

It is also important for investors to have confidence in the market. If you are optimistic about a commodity, even if there are no favorable factors, the price of this commodity will still rise; When you are relatively bearish, there is no profit and loss news, and the price will also fall.

Large scale manipulation

Although the futures market is a completely competitive market, some large companies with strong financial strength will participate in manipulating futures prices, which will eventually lead to speculative fluctuations in commodity prices.

relationship between supply and demand

Futures investment is the product of market economy, and its price changes are influenced by the relationship between market supply and demand. When supply exceeds demand, futures prices fall; On the contrary, futures prices will rise.

business cycle

In the futures market, price changes are also affected by the economic cycle. At every stage of the economic cycle, there will be price fluctuations.

government policy

Relevant policies formulated by various governments often have different degrees of influence on commodity prices in the futures market.

social factor

Social factors here mainly refer to the influence of investors' thoughts, psychological drive, media propaganda and other news.

Seasonal coefficient

There are many futures commodities, especially agricultural products, which have obvious seasonal characteristics. Prices will naturally change with the seasons.

Influencing factors of futures price

The fluctuation of commodity prices is mainly influenced by basic factors such as market supply and demand, that is, any economic factor that reduces supply or increases consumption will lead to the change of price increase; On the contrary, any factor that increases supply or decreases commodity consumption will lead to an increase in inventory and a decrease in price. However, with the development of modern economy, some non-supply and demand factors are also playing an increasingly important role in the changes of futures prices, which makes the futures market more complicated and unpredictable. The basic factors that affect futures price changes can be summarized as follows: although the futures market is a "completely competitive" market, it is still inevitably manipulated and controlled by some powerful large households, resulting in speculative price fluctuations.