What is the agricultural futures market?

The agricultural futures market contains many exchangeable products within the market. For example, soy and corn can both be used for livestock feed or human food production. If one commodity increases in price, farmers may be able to switch to the other commodity to feed their livestock for a cheaper cost.

What is futures trading?

This strategy is built to minimize losses by locking in a fixed price to buy and sell your commodity at a later date. Futures trading is particularly useful in the agricultural industry as the quantity of these products can be difficult to predict due to weather, low fertility, and other factors.

What are the risks involved in agricultural futures trading?

Naturally, there is a large risk involved when agricultural futures trading on the commodities market. Operating in this space is inherently based on prediction alone, with missteps leading to an overabundance of assets, a shortage of assets, or losing more money than you initially invested.

What will the future of Agriculture look like?

Wealthier global citizens will mean more demand for agricultural products. These trends could place strains on agricultural resources. Innovations in irrigation, biogenetics, and land usage are among the many advances that will be needed to help feed a growing population. These innovations could produce new trading opportunities.