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. Farmers, merchandisers, processors, and other hedgers in the agricultural commodity pipeline use Chicago Board of Trade and MidAm futures and options to manage prices. Futures and options contracts are designed to promote better business planning, more consistent product quality and service, and increased operational profitability. Speculators also trade grain futures and options in the pursuit of profitable returns on their investment, even though they may not have direct involvement in agribusiness.