Agricultural Futures

Trade Grains, Oilseeds, Dairy and Livestock Futures

Agricultural markets can be somewhat predictable as they are on a set seasonal planting, growing, and harvesting cycle. Historical agricultural commodity data allows farmers and traders to generally see what months certain things should occur for the best economic result. Many farmers do their best to stay within those windows of activity, while also reacting to the unpredictable weather, changes in international supply and demand, and any other unforeseen circumstances. A trader then has the challenge of trying to predict the farmers’ actions, which can be difficult without the time or the resources to properly watch the market. Here at RJO Futures we have brokers who spend their entire day educating clients, interpreting reports, and thinking up trades best suited for the current climate of each market.

To learn more on how to trade agricultural markets, request our free Ag Investor Kit

Popular Agricultural Futures Contracts

Corn Futures

Known as the largest revenue-generating crop in the US, corn is popular for speculators and hedgers alike. The US planting season starts in April and ends in early June with July through August being the critical period of the growing season. Once late August to early September hit, there isn’t much that can affect the final yield outcome. With growing interest in ethanol as well as the constant need for feed, this is a contract to watch.

Wheat Futures

Wheat is an International crop, with worldwide planting and consumption needs. There are five major classes of wheat in the US, including hard red winter, soft red winter, hard red spring, white and durum wheat. Though wheat is a hardy plant, the final yield can be affected by winterkill, drought, or excessive moisture.

Soybeans Futures

Regarded as the second largest revenue-generating crop for the US, soybeans are a multipurpose crop. Once harvested, soybeans are either crushed into soymeal, which is used for feed, or soybean oil. Soybean oil is used for food oils, paint, plastics, and bio-diesel production.

Live Cattle Futures

Live cattle futures are widely-traded commodities futures contracts, referring to cattle (cows) that have reached the requisite weight for slaughter, or about 1000-1300 pounds. Live cattle futures are delivered every year in February, April, June, August, October and December.

Feeder Cattle Futures

Feeder cattle refers to cattle that have been raised to roughly 600-800 pounds and are sent to feedlots in order to gain enough weight for slaughter. Feeder cattle futures began trading on the CME in 1971.

Milk Futures

Milk futures are an agricultural future that has been traded on the CME since 1996. In 2000 amendments were made and milk futures were split into two classes, Class III and Class IV futures. Class III futures are used to produce cheese and Class IV futures are used to produce butter and nonfat dry milk.

Reports to Watch

• USDA World Agricultural Supply and Demand Estimates Report
• USDA Crop Production
• USDA Grain Stocks
• USDA Acreage