What is agricultural futures trading?

From a small drought to a large storm, these commodities can be significantly impacted by just one instance of unfavorable weather. Agricultural futures trading allows farmers and consumers alike a way to protect their investment from the rise and fall of their product’s value in this volatile industry.

What are futures and how do they work?

Futures contracts lock in the current price of a commodity or stock and define the current fixed cost of the underlying asset and its expiry date. These contracts obligate the buyer to buy and the seller to sell, even if the price goes against the trade. As futures are leveraged, trades can become very profitable or incur a significant loss.

Who trades corn futures?

Learn why individual traders, grain elevators, farmers, investors, and commercial firms are among the diverse, global base that trades corn futures—the most liquid and active market in grain and oil seeds.

What is a commodity futures market?

A futures market is an exchange where investors can buy and sell futures contracts. In typical futures contracts, one party agrees to buy a given quantity of securities or a commodity, and take delivery on a certain date. The selling party agrees to provide it. » Learn more: What are the best commodity ETFs?