As a result, commodity prices can vary substantially from day to day. A - The financial effects of futures markets are responsible to a large degree for this stability. Ironically, futures markets are perceived for their volatility, but, in fact, provide the mechanism to ensure fairly consistent prices for grains and processed foods. Prices for cereal, for example, do not rise or fall to the degree of prices for unprocessed oats or rice. Futures markets such as the Chicago Board of Trade help to stabilize food prices.
Grains feed our livestock.
In both whole and processed forms, they provide nourishing food for our families. Efficient trading of grain, combined with effective business planning, helps to ensure relatively stable food prices for consumers. Futures markets provide the vehicle for better grain prices with less volatility. They also supply the mechanism for long-term business planning, which can lead to improved profitability. A - Virtually everyone.