Food and fiber market research is the process of gathering, recording and evaluating past, present and future speculation for increased success in the tail-tingling world of commodities investments, where you can make a fortune or lose one in seconds. It’s probably the most volatile of all investment options, but with access to food and fiber market analysis and information about food and fiber market research, you’ll increase your odds of making an excellent return on your investment, or at least breaking even.

Part of the food and fiber market research information you’ll need to stay abreast of is the weather, rainfall, crop diseases and crop production worldwide, as these variables affect the prices of the options you hold in the area of food and fiber marketing. Whether you’re a seasoned veteran of options investment or just starting out, food and fiber market analysis will be vital to your efforts.

1. Consider hiring a specialty investment firm to handle your transactions and provide you with daily food and fiber market reports.

2. Participate in webinars, online classes and seminars to learn more about food and fiber research.

3. Get familiar with the various trading exchanges and the goods they handle.

Action Steps
The best contacts and resources to help you get it done

Assemble market research on fiber commodities

The information on food and fiber market demand and supply, weather conditions and historical performance will provide the tools you need to become a more effective options or futures trader. Fiber markets consist of cotton, flax, industrial hemp and kenaf, although the primary crop is cotton, with the United States and China leading the world's production.

I recommend: Visit Cotton Incorporated.com for research reports and information on the genetic improvements that increase the yield of cotton. Agriculture Marketing Resource Center offers free reports on cotton, and links to additional websites with more information on this crop. The United States Department of Agriculture Marketing Service publishes the Cotton Market News reports with detailed information about the quality, quantity and grade of cotton being harvested throughout the US, with additional information about foreign production also. Get daily weather information from Cotton Outlook in addition to news on other events that affect cotton growers worldwide.

Evaluate market research on food commodities

Food market research encompasses butter, cocoa, coffee, milk, sugar and orange juice. Study reports, charting and information on past performance to create a food commodities investment plan.

I recommend: RJO Futures Market Commentary gives information on rising and falling food commodity prices and market research. The CME Group has reports on historical volatility of commodities including foods such as butter, corn, soybeans and wheat. This information is helpful when conducting food commodities market research. Get quotes from the Intercontinental Exchange/NYBoard of Trade for researching the food and fiber markets. You'll find charts, market research and even a link to track weather that affect the crops you might want to include in your food and fiber marketing research studies.

Implement your food and fiber market investment plans

The purpose of accumulating all the information available is to formulate an investment plan. Because so much information is available at no charge on the Internet, the necessity of hiring a broker to provide you with the data is unnecessary, however a broker can condense the information and offer suggestions in your investment portfolio.

I recommend: Visit Lind/Waldock for market volatility information on food and fiber markets traded at the New York Mercantile Exchange and Intercontinental Exchange (ICE), formerly the New York Board of Trade. Their experienced brokers can help with your investment strategies and even put you on the road for self-directed trading. Go to Ag web to get information and free charting for food and fiber commodities. Keep a close watch on FutureSource.com for food and fiber commodities contracts and pricing.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Options give the buyer the right (but no obligation) to buy or sell a commodity at any time during the contract. A futures contract, for example a contract for cotton or lumber, requires that the buyer actually purchase the commodity. The seller must sell the goods and also deliver the goods at a specific time.
• •  So much information on food and fiber market research is available online that there is never a need to pay for the data you can obtain for free.