WHO USES KCBT WHEAT FUTURES?
Traders in the KCBT wheat pit typically represent interests that handle and process wheat – producers, exporters, millers and bakers – and whose inventories are subject to price change. They use futures contracts to minimize the risk of price change, a procedure called “hedging.” Speculators also are represented in the KCBT wheat pit. They perform the crucial role in any futures market of assuming risk from hedgers. These investors neither own nor plan to own commodities, but hope to profit from price changes in the futures contracts they buy and sell.
