Finalto, Playtechs financial division that was acquired by Gopher Investments, announced on Friday the launch of soft commodity spots on its platform. It will include Wheat, Soybean, Corn and Cocoa spots.
This is the first time the platform is offering such soft commodity products.
“We‘re delighted to expand our commodity offering by expanding in soft,” said Matt Maloney, the CEO of Finalto B2B. “These represent a growing part of what our clients trade and means we’re staying at the front of the pack in terms of our liquidity offering.”
“Added to our Energy and Metals it means we offer a comprehensive suite of commodity products. We look forward to adding more products this year.”
These soft commodities were added to the platform as demand for such products is rising among the clients of Finalto, which include small hedge funds, brokers, asset managers, high-net-worth professional individuals and family offices.
Solid Returns
Finaltos Chief Market Analyst, Neil Wilson pointed out that these products generated strong returns in recent years.
“Soft commodities produced strong returns for investors last year as the global economy rebounded from the dislocation of the pandemic. Rising inflation pressures have corresponded with higher soft commodity prices, and these are set to remain above trend in 2022,” Wilson said.
“Bad weather also affected a number of soft commodity crops last year, whilst La Nina weather risks are rising this year. Uncertain weather conditions and rising demand is seen supporting prices through 2022, albeit Soybeans face downside pressure from rising US production and an expected record crop in South America.”
Meanwhile, Finalto is in the process of changing its ownership from Playtech to Gopher. Playtech shareholders already have approved the $250 million deal that is expected to be closed by the second quarter of 2022.
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