Unstable Futures Market Raises Concerns for Farmer Participation in Agriculture Trading.
The article examines how efficient futures markets are in determining and spreading prices for various agricultural products. The researchers used statistical tests to analyze futures contracts for cumin, castor, wheat, rapeseed-mustard, guar seed, cotton, and coriander. They found that some contracts, like wheat, are good at predicting prices, while others, like guar seed and cotton, are less reliable and may involve speculation. Farmers should be cautious when participating in these markets. Overall, futures for castor seed, cumin, and rapeseed-mustard are effective in price discovery and dissemination, while cottonseed oilcake futures can be profitable with the right trading strategy.