Agricultural Futures Trading

Overview

vCapFutures provides speculators and agribusiness clients such as elevators, private grain companies, processors, manufacturers and end-users with access to electronic and pit-traded commodity markets. Through our high-end trading systems and institutional-class technology, we can assist agribusiness clients with commodity risk management and hedging requirements as well as help them control, streamline and mange their revenue streams and cash management systems.

By providing agribusiness clients with superior technology and integrated trading systems this gives them a means to control risk; use the market to limit the impact of volatility; capture and retain quality and specific-trait advantages; control input costs, protect inventory value and enhance operational margins. Our demand-side clients benefit from the same principles, research and strategies as those on the supply side.

Whether you are an agribusiness client or speculator, vCapFutures can provide you with access to the world's most important electronic and pit-traded commodity contracts:

• Wheat
• Corn
• Oats
• Soybeans
• Rice
• Cocoa
• Coffee

• Sugar
• Cotton
• Orange Juice
• Cattle
• Pork Bellies
• Milk
• Lumber

Research

As a vCapFutures client, you can receive up to the minute data and immediate access to the world's agricultural markets. Having extensive access, along with the ability to execute your orders immediately, is an essential risk management tool in the volatile agricultural sector, where price movements can be triggered by natural disasters, extreme weather and other events.

Basics

Agricultural futures contracts are standardized according to the amount of commodity being bought or sold, the expected time and place of delivery, and the quality of the product. They are legally binding agreements, made through a futures exchange, to buy or sell a product in the future. The agricultural futures markets bring together buyers and sellers who have opposing price risks. Sellers (i.e. farmers) are worried about commodity prices falling, while buyers (i.e. wool, cotton or wheat buyers) are worried about prices rising. Both parties have the opportunity of locking into a future price, by either buying or selling agricultural futures contracts.

Advantages

Advantages to trading agricultural futures:

• They offer agribusiness additional protection. For producers, that means obtaining protection against declining crop prices without giving up the opportunity to profit if crop prices increase.
• Under a multitude of market scenarios - rising prices, falling prices, or even stable prices, agricultural futures can help you achieve your investment or risk-management objectives. The agricultural community and investors can significantly reduce risk exposure with agricultural futures.
• Agricultural futures are exchange traded. Therefore, the audit trail systems maintained by regulated futures exchanges offer a degree of oversight that is unparalleled by any other marketplace.