Other Investing Opportunities
Futures and Options
Why do producers of commodities use futures markets?
Many producers use futures markets as a hedge against dramatic price fluctuations, to raise cash for what they produce, and to make their financial affairs more predictable. In terms of pricing, producers of all sizes are on an equal footing, and may come together with a common product to take advantage of the more favorable prices afforded to larger players by being a part of a larger pool of available product.