Epsilon Archive for Student Projects

Abstract

The agriculture throughout the world is becoming increasingly deregulated and this has affected the prices of raw materials to fluctuate at a higher degree than earlier. This in turn has made it interesting and in some cases even necessary for the trader as well as the
producer to gain knowledge about the trade instruments available to ensure a good enough price for their produced goods. This study encompasses a number of ways to
trade grain and oil plants in order to clarify what differences there are in the several contracts that exist in the present situation, economical as well as practical. The various trade instruments available to the producers on the Swedish market are described in the theoretical part of this study.
The study also contains a simple arithmetic example, based on historical prices collected from grain traders and trading floors, in order to point out the differences in the
economical outcomes depending on the business strategy used to sell the produced goods.
The study shows the importance, as a producer, of being able to use and take advantage of the different trading instruments at hand to monitor and exploit the shifts in the
market. From an economical point of view it is not enough to just excel at farming but knowledge about the market functions and the trade instruments at hand is also required
to be able to secure a good enough price for your goods