Chapter 20

How to Gain from Grains: Trading Corn, Wheat, and Soybeans

IN THIS CHAPTER

Bullet Exploring the corn markets

Bullet Examining opportunities in the wheat markets

Bullet Selecting the right strategy to trade soybeans

In this chapter, I look at some of the major agricultural commodities that trade in the futures markets. These commodities, sometimes simply known as ags, are a unique component of the broader commodities markets. They’re labor intensive and subject to volatility because of underlying market fundamentals, which I explore in the following sections. However, they also present solid investment opportunities. Corn, for example, is a major food staple; wheat is an absolutely necessary commodity and, according to archaeologists, may be the first commodity grown and traded; and soybeans have a growing number of applications, ranging from fuel additives, to feedstock, to trendy food products. I examine all three of these commodities and their investment opportunities in depth.

For additional information on agricultural commodities in general, I recommend checking out the following resources:

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