It is interesting to note how supply and demand can vary with different futures. Both the supply and demand for financial assets may change by large amounts in a relatively quick manner which will result in considerable price moves. An excess supply of stocks or bonds can cause prices to fall whereas strong demand can send prices soaring. In either case supply and demand can be difficult to estimate because both may vary greatly but both are essential to determining the future price.

The supply and demand equation for agricultural products is generally different than for financial futures. Supply may change radically due to weather related incidents or other natural causes such as insect damage. For example, a drought in the cocoa growing regions can destroy 40% of the crop causing prices to rise dramatically. If weather conditions and other factors are beneficial for growing cocoa then an abundant crop might cause prices to fall. In either case the supply of cocoa can greatly affect the market price.

The other side of the equation does not generally change so radically for agricultural products. Demand is relatively constant or usually changes by consistent amounts. For example, people do not usually change their intake of cocoa by large amounts. We do not triple our intake of chocolate one year and eat negative amounts the next. The same reasoning can be applied for other agricultural products such as the grains and the meat complex. Supply is often the more difficult and variable determinant in the price equation.