What kind of economic indicators do traders watch in the markets?
In any market, the forces of supply and demand directly influence price. Buyers want to acquire a product at the lowest possible price and sellers want to sell it at the highest price possible. For agricultural commodities the various factors that affect, causing prices to rise and fall. These factors include acreage, crop yield, Government Farm Policy & Programs, exports and the weather. Statistics generated from the U.S. Department of Agriculture in its monthly crop report provide valuable information to the grain trade. CBOT® financial instruments operate on the same premise. Suppliers of money, such as banks or thrifts, lend excess funds at a price-the interest rate. The level of interest rates-the price of money or credit-is determined by supply and demand. Borrowers want to acquire at the lowest rate possible; lenders want to maximize their interest income. Government policies, business conditions, Federal Reserve actions, and consumer saving and spending preferences are among th
