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Journal Article
Have extended trading hours made agricultural commodity markets riskier?
Traders in agricultural commodity markets view volatility differently depending on their objectives. Producers generally dislike volatility and uncertainty and they trade on futures markets to lessen the risk associated with price changes. Nonproducers?traders with no direct involvement in producing or using the commodities themselves?seek to profit from uncertainty by predicting the path of futures prices. Producers are concerned that a recent extension of trading hours at commodity exchanges could lead to heightened volatility since trading is now taking place during the release of key ...
Journal Article
Agricultural Economic Summit Highlights Growing Connection Between Agriculture and Energy
The agriculture and energy sectors have become more tightly connected as renewable energy increases demand for input crops and creates alternative income opportunities for farms. Industry experts underscored these links at the Kansas City Fed’s Agricultural Economic Summit in May. Despite some longer-run uncertainties, Summit participants expect energy investments and developments to have a significant influence on the future structure of ag and commodity markets.