-
How Futures Markets are beneficial to Farmers
-
Farmers spend money planting. This means spending money to buy seed, fertilizer and other supplies.
-
Farmer negotiates a wheat futures contract with a delivery date corresponding to the wheat harvest
-
-
A number of factors including weather, consumer supply and demand, and local, national or global events affect prices.
-
Despite changes in price that may occur between the contract agreement and delivery, the farmer still gets to keep the original agreed upon price in the contract.
