Given that the use of futures and options provides one of the best ways for producers and users of commodities to address price risk, we are fortunate to have trading access through FC Stone, LLC In addition to performing traditional clearinghouse functions, FC Stone services include an extensive network of trade information an research results.
While agribusiness managers have excelled at managing the risk associated with production, we feel that a greater emphasis on managing the risk associated with the commodity prices is warranted. The fact that the volatility in the price range in any crop year can be a determining factor of financial success, or even survival, implies that the marketplace will largely define the future of production agriculture. This risk suggests that managers across the entire agribusiness spectrum would greatly benefit from learning ways to capture profits from short-lived pricing opportunities that might come their way.
