Agricultural Futures

Agricultural futures are contracts that allow farmers, traders, and investors to buy or sell specific quantities of farm products like wheat, corn, or soybeans at a predetermined price, set for a future date. This helps producers manage risks associated with fluctuating prices and allows buyers to secure costs. For example, if a farmer believes prices will fall by harvest time, they can lock in a price now, ensuring profit stability. These contracts are traded on exchanges, and prices reflect supply and demand dynamics, influencing the agricultural market and economy.