Agricultural Markets Commodities & Contracts

Agricultural Markets Commodities & Contracts

By Thomas Alberts

Open Ended

Define Commodity:

Open Ended

What is the law of Supply?

Open Ended

What is the law of Demand?

Open Ended

What is Equilibrium?

Review Quiz!

​Some text here about the topic of discussion.

Multiple Choice

Which of the following is NOT a true statement?

• Prices of commodities are determined by the motives of buyers and sellers

• If buyers are scarce, seller will likely lower the price

• If sellers are scarce, buyers will likely buy at a lower price

• Sellers look for highest price

Multiple Choice

Which of the following happens when a product is produced in larger quantities than it is demanded?

• Surplus

• Shortage

• Equilibrium

• Overage

Multiple Choice

Which of the following is met when the quantity of a product matches the demand of the product?

• Surplus

• Shortage

• Equilibrium

• Overage

Multiple Choice

Which of the following are contractual agreements made between two parties through a regulated futures exchange?

• Futures

• Actuals

• Retails

• Surpluses

Multiple Choice

Which of the following are typically producers and consumers who buy and sell futures contracts seeking “to lock in” future prices for commodities which are essential to their business operations?

• Speculators

• Hedgers

• Riskers

• Profiteers

Multiple Choice

Which of the following are traders with the goal of profiting on future price moves?

• Speculators

• Hedgers

• Riskers

• Profiteers

Multiple Choice

Which of the following is the largest futures exchange in the United States by volume?

• Kansas City Board of Trade

• Chicago Mercantile Exchange

• Chicago Board of Trade

• New York Board of Trade

Multiple Choice

Which of the following is the examination of the forces of supply and demand in a commodity market?

• Technical analysis

• Floor analysis

• Fundamental analysis

• Trader analysis

Multiple Choice

What percent of production and marketing contracts govern the value of U.S. agricultural production?

• 26 percent

• 34 percent

• 36 percent

• 46 percent

Multiple Choice

Which of the following is NOT a benefit of contracts to agriculture producers?

• Reduce income risks of price and production variability

• Ensure market access

• Provide higher returns for providing various farm products

• Increase income risks of price and production variability