While grains have been traded as long as they have been grown,
the modern grain futures contract has been around for about 150
years. In that relatively short time, grain futures trading has
grown and evolved from a domestic weather and supply driven
market to one driven by global macroeconomics and production.
While financial contracts have become the most heavily traded
futures contracts by volume, grains still are what many people
think of when considering trading futures. Jokes abound about
traders being worried they will end up with a truckload of corn
on their front lawn. Grains hold a special spot, and
understanding the factors unique to this market ultimately leads
to success. As in all markets, supply and demand are the primary
drivers, but those can be affected by weather conditions,
emerging markets, crop conditions and even exchange
rules.Weather Weather always has been a major factor in grain
trading because it affects everything from planting, to crop
condition, to harvest, to yield. This is dis