Grain futures – one of the oldest, popular and respected futures contracts. For Grains include wheat futures (Wheat), corn (Corn), soybeans (SoyBeans), rice (Rough Rice), oats (Oats), soybean meal and soybean oil (SoyMeal, BeanOil). The main players in this market – not speculators. It – manufacturers, wholesalers, processors, exporters and importers who hedge their risks on the stock exchange. Strictly speaking soybeans do not apply to crops, but they are traditionally on the stock exchange are included in the group is to grain futures.
The size of the contract for wheat, soybeans, corn – 5000 bushels; soybean oil – 60 thousand pounds or 27,216 metric tons; soy flour – 100 short tons and 90.7185 metric tons. Since there are bushels of volume measure, for each equivalent weight of grain varieties will be your own. In particular, the CBOT corn one standard lot corresponds to 127,006 metric tons, for CBOT wheat – 136.0775 metric tonnes for the CBOT soy – 136.0775 metric tonnes.
Wheat, soybeans and corn are traded in fractions of 1/8 cent.
The major players in the grain market are:
- grain producers (farmers), are interested in the fact that prices did not fall on him;
- wholesale buyers and grain elevators (merchandisers, elevators), concerned the grain to grain prices did not fall for the period of grain storage and processing;
- processing plants and the food industry, are interested in low-cost and, accordingly, decline in grain prices;
- exporters who are interested in high grain prices;
- importers are interested in the low grain prices.