Futures Market Explained
Video Overview & Insights
Farmers use various tools to control the many risks in agriculture. Watching the weather influences when they plant or harvest. Buying crop insurance and selecting farm bill safety net programs helps protect them from crop devastation. But they can also manage some of the threat posed by volatile market prices by participating in the futures market. Farmers can get a feel for how that works if they play Commodity Classic, an online teaching tool that uses fictitious bushels of grain in a fake futures market.
I don’t get it
But here at Harvest Public Media, we wanted to better understand how the futures market helps both producers and users of a major commodity, such as corn. And how the benefits trickle down to regular food consumers. Here’s what we learned.
What? - Joe Biden
More User Perspectives
The background music is too loud.
@DCDAB1Good video. Background music is distracting
@MichaelMgudlwaah, those good ol' days when corn meant corn!
@whitehole1151These are brilliant. Thanks
@AaronFurman79this is an amazing explanation, thank you so much
@goji7001Years later, I found this to be beautifully illustrated, felt very organic, and I like all the handcraft that went into explaining features here. Thank you, THANK YOU!
@torleyWhat if the farmer fails to produce enough quantity that is specified on her futures contract?
I assume she does need to meet her contract obligations such as quantity.
Thank you!
@AritulCommodity futures
@meghanaradhakrishna6721Was there AI 9 years ago😂😂😂
@differencebetween6823Amazing video
@megz2708I stepped into trading thinking I could learn as I >go. and while I loved the Challenge, the reality hit Hard. YouTube wasn't enough, and the Constant Ups And downs left me Guessing. I lost More than I won, but it taught me What I was Missing.
@RachaelHarmon-d6kThat was Excellent!
@charlessmart8301I think i lost the knowledge i had . WTF MAN 😒
@IamDacaah888Nice explanation
@Dovahkiin0152very good video, thanks !!!
@RobGutmannOkay, now explain it to me like I'm 5
@3sm125Instructions unclear: bought 100 acres mid winter, corn is not growing.
@kevinburrell8431Getting into the market and trading sounded simple at first, but once I got in, the price swings and mixed information made everything more confusing. I’ve tested several strategies, yet the results are just not there.. Seeing others move ahead while I struggle has been frustrating. I need real guidance.
@VillalpandoDíaz-i8cBeautiful video! The explanations were so clear too
@MtnktownI mainly trade
Kc
SOYB
Futures contracts lock in today's prices (or rather, today's projection of the prices) for a future delivery date. The real reason that a farmer wouldn't want to sell the entire crop on the futures market isn't to speculate on the price of the crop but rather to make sure that the crop is actually there to deliver. If you sell contracts for 5000 bushels, you are legally obligated to deliver 5000 bushels on the delivery date. If the harvest is only 4000 bushels, you have to come up with another 1000 bushels or buy back the contracts that obligate you to deliver those 1000 bushels, regardless of how much it costs to do so. Selling futures protects you from falling prices, but it exposes you to risk from crop failures, which would simultaneously cause the price to spike.
@TheYOfMathEither the producer or the buyer loses. It is not a win-win scenario for both sides.
@EmrahBecer55thanks a lot for the video i really appriecate it
@mavelous3283"She" lmfao
@MrRumpunch70The music is distracting
@jameelkassam7365nice to see some non-ai genned graphics for a change
@Hank-ry9bzThanks
@luffyy8194The quality of this video is excellent.
@DonnaMonna-o8zI’m here because I watched Trading Places and they did this with orange juice and I didn’t understand.
@Whatsthatsmell69.Who goes through the trouble of contracts and farming for 50 kernels of corn?
@ScatTruntersNice 😊
@apriljohnson7899I am a finance major and this is one of the best explanation i have seen, my professor is an over priced commodity. 🤣
@MohitTiwari-aka-mohitI'm sorry but I literally don't understand this .... don't roast me now. n I was focusing on the video. I'm only 14 trying to trade futures so I want to understand
@sherdonmcknight72Brilliant video thanks
@djshocka2007Very well explained. Thank you. This really helped me get a better understanding of how futures contracts work.
@josephmichaeldelossantos5Yeah.. Uhhh long story short it's a nonsence scam.. farmers have subseries and set crop prices.. it's just fantasy monopoly
@manchagojohnsonmanchago6367Thank you sis
@MuhammedAli-zi2lySo is it like a market for averages instead of buying and selling from a volatile price?
@stefanyoutube-v6jThanks for the educative video…….As new investor, it's important to remember that investing and trading require more than just technical analysis skills. Discipline and emotional maturity play a significant role in achieving success. It's wise to keep in mind the adage of "time in the market vs. timing the market," as this mentality can help you weather market volatility. With insights of Harry’s Dent and my commitment to learning and growth, I've been increasing my earnings in just a few months. Keep up the good work..
@MargieButzInstructions unclear : accidentally sold house instead
@anditsPthe core idea of contract is just risk management
@KamyariiThat actually made sense. To those people that are still not understanding maybe watch a couple more basic videos explaining futures and how they work before re-watching this. I at least had a very basic understanding coming into this video.
@Grandmas_Favoritebig returns come from investing big. investing big comes from building conviction, conviction comes from understanding, understanding comes from doing your homework and research beyond surface level.
@kirchhoferfctabethadm8539Very well explained, thanks!
@ricpSo if I buy into the future of the grower, but they have two investments is the futures and then after that right I’m gonna have to watch this video again, but is the buyer how do you invest in the future of the buyer? And then so you can pick which side of futures you want to bid on.
@JaylahIvy-b1mSo if I buy into the future of the grower, but they have two investments is the futures and then after that right I’m gonna have to watch this video again, but is the buyer how do you invest in the future of the buyer? And then so you can pick which side of futures you want to bid on.
@JaylahIvy-b1m