Long after all the hedging and speculating, and after the physical delivery of the goods under contract, these food products make their way to your supermarket. Because our hedgers were able to set predictable prices for their products, you get relative consistency in the prices you pay for groceries from week to week. But sometimes, these prices fluctuate.
The Facts Behind Food Prices
The prices of agricultural futures depend on a number of external factors – and these prices ultimately impact what you pay for your food.
You’ll probably never have to think about any of this when you’re at the store. That’s because hedgers already have. By using futures to protect their commodities from this world of price variables, they can cut their prices – and yours.
Explore the Factors Below
You know the factors. Now let's see how they work together to move prices up or down.