Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Are most units of a commodity particularly soft commodities like crops and livestock sold over the counter? Meaning, the producer finds a wholesaler, and the wholesaler finds the retailer, and directly to consumer. Or do most of the units finds their way to some place like a NYMEX or Chicago Board of Trade etc etc where they are bought by some investor first? And then makes their way to wholesaler yada yada yada?
The Board of Trade deals in commodity futures. For food type commodities, farmers have the option of selling futures or of selling direct to the manufacturer or even of selling direct to the consumer. Most farm products are sold in bulk to the processors.
The Board of Trade deals in commodity futures. For food type commodities, farmers have the option of selling futures or of selling direct to the manufacturer or even of selling direct to the consumer. Most farm products are sold in bulk to the processors.
The future is just a contract to deliver goods at a later date right? When farmers, or buyers go out, they are looking to enter contracts to receive and deliver goods at a later date dont they? Are they not in competition with each other then, the farmers, processors, consumers, and the futures traders?
Actually the European Union currently sets prices for agricultural products.
I am mystified about what you think you are trying to find out.
I just want to know how it all works out. So you have the traders buying the goods, but also the retailers, and consumers. Who actually buys from whom? Do the retailers, and consumers actually pay the traders for the goods, or the producer directly? If they are separate, then what does the trader do with the goods he buys?
Why? What do you need the information for? You appear to want enough information to fill multiple large books and a couple of years of college courses.
Why? What do you need the information for? You appear to want enough information to fill multiple large books and a couple of years of college courses.
I did not realize my question is that broad. But that is a start. I will narrow it.
I have read the article before. But it does not seem to contain what I am looking for. Basically, all the volume of soft commodities like livestock, or the contract to deliver said goods, is it more than what the wholesalers, or retailer are getting direct from the farmer so they can actually put it on tables as food?
It would sure help to know why you want to know. Do you want to buy commodities? Do you want to broker commodities? Are you starting a business? Are you thinking about becoming a farmer?
And what commodities? Many of them are bought and sold and produced differently. Cattle are bought and sold differently than pigs and differently from wheat, and certainly not the same way as heating oil.
I answered your first question. Most farm produce is sold to the processors (or manufacturers, if you like that word better). Wheat goes from the farmer to the guy who makes the crackers, probably by way of a co-op, which is owned by the farmers. Cauliflower goes to the company that freezes cauliflower or else trims it and wraps it in cellophane and delivers it to the grocery store. Pigs are sold directly to the slaughter house.
That was not the answer that you were wanting, so you have to rephrase your question because I don't understand what you are trying to find out.
Last edited by oregonwoodsmoke; 10-11-2016 at 10:18 AM..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.