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Growing and harvesting crops are only part of being a modern farmer. Successfully running a small farm also takes a thorough understanding of the market and the forces that drive supply and demand, including the activity of commodity funds. To help farmers throughout Seward, NE understand how investors impact their bottom lines, the professionals at RG Investments are hosting a workshop on February 26th at the Seward Memorial Library.

Why Is Understanding Commodity Funds Important?

A Quick Guide to Commodity Funds

Grain and many other commodities are sold in exchange markets, either directly or through futures contracts. Futures, which are contractual agreements to sell a certain quantity of a product at a specific price, are popular with investors, who trade these futures in commodity funds. When an investor buys a future contract, they’re essentially betting that the price will go up before the sale. If it does, they’ll be able to make a profit by selling the commodity or the contract on the market.

Why Farmers Need to Understand the Commodities Market

In a sense, commodity funds disrupt the normal factors that shape supply and demand. Investors compete with manufacturers, ranchers, and other businesses that need grains, adding to demand and driving prices up. Farmers who understand the system can adopt marketing strategies that increase profit margins without changing anything else about their operation. You can also protect yourself from wild fluctuations in the market, some of which are caused by commodity fund speculation.

 On February 26th at the Seward Memorial Library, the investment professionals at RG Investments will explain how commodity funds impact your business, increasing your chances of success in the modern global economy. The workshop begins at 5:30, and dinner is provided by Spare Time Catering. Visit RG Investments online or call (402) 643-6669 to reserve your workshop space, and follow their Facebook for more tips and updates.

Futures and options trading involves risk of loss and may not be suitable for all producers or investors.

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