Grain marketing is essentially a form of commodity trading. The commodity when dealing with grain marketing is the different types of grain that are produced and then sold or purchased. Futures traders deal with speculating on the grain market when it comes to prices of different types of grain on a day-to-day basis.
Managing Risks
The main risks when dealing with grain marketing is that a particular farmer's grain crop will be damaged or come in with a low harvest. This can be due to poor or no storage conditions, or it can be due to poor field conditions or unexpected events.
Markets Used
When dealing with grain marketing, there are two specific types of markets. One is based on speculation and futures and works much the same way the stock market does. Prediction of the price plays a key role in this market. The other market is the actual buying and selling of stockpiles of grain. This market directly effects the speculation and futures market based on supply and demand.
Market Commenatries
There are several different sources that can aid futures speculators when dealing with grain marketing. The Chicago Board of Trade (C.B.O.T.) is America's largest commodities trading boards that deals with grain marketing.
