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What are commodities futures options used for?

Grain farmers use commodities futures options for getting their products on the market. Without commodities futures options, farmers would have a tough time selling their products.


What is commodity brokerage?

A commodity brokerage is a company that sets up deals between buyers and sellers of commodities, more specifically commodities futures and commodities options. Easy example: You are the grain buyer for Wonder Bread. You need 100,000 bushels of wheat every month for the next year. You could spend your entire life going from grain elevator to grain elevator trying to scrounge up 10,000 bushels here and 5,000 bushels there...or you can call American Grain, tell them you need as much wheat as you do, and let them find it for you.


What was the most common commodity used?

The most common commodity used historically has been grain, particularly wheat and rice, due to its essential role in human diets and agriculture. Grain served as a staple food source, facilitating trade and economic development across various civilizations. Other significant commodities included livestock and precious metals, but grain's widespread cultivation and consumption made it the most universally utilized.


What do you mean by crop production?

Crop -- Cultivated plants or agricultural produce, such as grain, vegetables, or fruit, considered as a group. Production -- The act or process of producing


What is commodity goods different from basic goods?

Commodities are basic goods, but they're products that are essentially the same from all suppliers and are, therefore, sold on price rather than any unique quality of the good. I use wheat as an example of a commodity. All the wheat of a particular type, like hard red winter wheat, is the same. You choose to buy it from Grain Dealer A rather than Grain Dealer B because Grain Dealer A has more in stock so you can be more sure of getting any, has an elevator a quarter-mile from your bakery, or has more trucks so you can put in an order and get it quickly.

Related Questions

What is the name for Capacity for commodities grain and fruit?

dry measure


How much grain is in pomegranate?

Pomegranate is a fruit, not a grain.


what is the grain capacity for a grain drill called united farm tools 5200 grain drill?

united farm tools grain box capacity 5200 model


Is a quince a vegetable?

No, quince is a fruit.


Is corn an egg a fruit a vegetable or a grain?

Corn is a grain.


What are commodities futures options used for?

Grain farmers use commodities futures options for getting their products on the market. Without commodities futures options, farmers would have a tough time selling their products.


Is corn fruit or vegetable.?

Botanically, corn is a grain or dry fruit.


What is grain capacity for 8300 john deere grain drill?

Filled to maximum capacity, it's approximately 36 bushels of wheat.


Is rice a fruit or vegetable?

nope, Rice is a grain grown in rice fields And has Carbs and vitamins are usually sprayed on rather than fruits who had natural vitamins but no Carbs. Update: I think that grains are dry fruits, and fruits certainly have carbs. The previous poster may have meant starches.


What is commodity brokerage?

A commodity brokerage is a company that sets up deals between buyers and sellers of commodities, more specifically commodities futures and commodities options. Easy example: You are the grain buyer for Wonder Bread. You need 100,000 bushels of wheat every month for the next year. You could spend your entire life going from grain elevator to grain elevator trying to scrounge up 10,000 bushels here and 5,000 bushels there...or you can call American Grain, tell them you need as much wheat as you do, and let them find it for you.


Why do you not use the term maize fruit and maize seed?

The maize grain is actually a fruit in which the fruit wall and the seed coat are fused together to form a protective layer. Such a fruit is termed as grain or seed .therefore, we call it as maize seed instead of maize fruit


Do you consider sugarcane a fruit?

I would think it is a grain.