Three aspects encompass the grain and oilseed commodity markets basics. First, you have the commodity markets themselves and how they function. Second, there's the news that drives pricing conditions in those markets. Lastly, you have the regulatory bodies that govern both the markets and the news within those markets. If you know the essentials of the grain commodity markets, your business can make better investment, planting or purchasing decisions.

Grain futures or even soybean futures can be a profit driver for the farmer in Iowa, the restaurant owner in Texas or futures trader on Wall Street. While these professions are vastly different, they all feel the impact of the grain and oilseed commodity markets in one way or the other. To help your company navigate these markets, it's important that you know the basics. Therefore, to discern this information, you should:

1. Understand how the grain commodity markets operate.

2. Use the latest news to learn the basics of agriculture and grain future trading.

3. Contact the regulatory agencies and associations that govern the grain and oilseed commodity markets.

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

Gain a working knowledge of the grain future market

To have a proper commodity market knowledge base, you need to understand how agriculture and commodity markets work in concert. Think of the agricultural market as the simple act of selling crops for a predetermined price. Then, interlace that with the workings of an exchange traded commodity market and you have a grain futures market.

I recommend: Examine the University of South Carolina guide to agricultural markets for a complete listing of resources for basic information about agricultural commodities. Review the commodity market tutorial from Futures-Trading-Mentor.com to learn more basics about commodity futures and the market.

Integrate the latest grain commodities markets news

News and information is what drives any market. Those who have the news the fastest and know how to use it, usually come out on top. Without news and information, a commodity market or any market would grind to a halt. That's why you need to stay current on the latest commodity news just to remain on an even playing field. One basic piece of information you should stay abreast of is commodity pricing.

I recommend: Use the agricultural and grain news from Agriculture Online and the Grain Market News from STATpub.com to determine the correct pricing structure for your commodities both now and in the future.

Know the rules of the grain commodity markets

Another basic component of any market is the orderly and uniform enforcement of the rules and regulations. However, before you trade or use the markets as a guide, you'll need to know those rules.

I recommend: Contact the Commodity Futures Trading Commission for a copy of the trading rules. Speak to representative at the United States Department of Agriculture (USDA) to obtain any governmental regulations that could influence the markets. Join the National Grain and Feed Association for the best advice on the application of the rule and regulations.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Realize that grain and oilseed commodity markets basics also incorporate weather predictions into the pricing models. Therefore, if your company decides to invest in or feels a material impact from grain futures, you must keep a keen eye on the weather conditions in areas that produce the various commodities. Weather patterns can destroy an entire crop season and send prices soaring.

The grain and oilseed commodity markets include trading in corn, oat, rough rice, soybean and wheat products and, like other commodity markets, this is where raw or primary products are exchanged with standardized contracts for the future delivery of the physical materials.

Experts suggest that commodities equal only 3 to 10% of your total investment as they can be riskier than other investment options. However, by mastering one piece of the commodity market, such as grain futures and oilseed commodity, you stand to be more effective and profitable.

Before you break into the grain and oilseed commodity markets:

1. Monitor news and changes in the grain commodity markets to stay educated and informed.

2. Check grain future market trade indexes daily to stay on top of the changes in worth.

3. Use a broker or dealer to help you trade grains options more efficiently.

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

Learn about grain future trading before purchasing anything

Follow market trends, prices and services using news articles, charts and other research methods. The more you learn about the oilseed and soybean futures market, the more profitable you can hope to be when you do make the choice to invest. Take advantage of wealth of information the Internet offers you to find the current prices, challenges and plans for the future of oilseed and grain commodities.

I recommend: Visit the US Commodity Futures Trade Commission website to find new regulations, information analysis and links to popular reports. Read the RJO Futures 10 Dos and Don'ts of Trading Futures for a general overview of the futures market. Use Statpub.com Oilseed Market News and Food Business News to find the latest information about grain commodity markets.

Develop a grain commodities trading plan

Consider your budget when investing in grain and oilseed commodities. Decide how much you'd like to invest and stage a plan to do just that. Use analysis reports, current prices and projections to come up with a strategy and timeline. Start small and allow your investment to run the course of your timeline before making any harsh changes.

I recommend: Get a free grain forecast and information about trading software from Market Technologies. Follow the USDA grain and oilseeds analysis and use Wave59 trading software as a grain and oilseed commodities guide for assistance in planning your investment.

Trade online or partner with a grain futures dealer or broker

If you have experience in trading stocks and futures, consider saving money by investing online without the assistance of a broker. Implement your soybean futures and grain investing plan yourself, taking the time to check indexes and read news to stay on top of your money. If you don't have the experience or time necessary to do your own investing, hire a broker to do the research and hard work for you.

I recommend: Use FuturesKnowledge for commentary on today's grain research and to research brokers online and in your home area. Futures Brokers Directory and TFC Commodity Charts also offer assistance in finding the right brokers to make your investing in grain futures more profitable. Contact firms like Hills Capital Management to implement your investment plan.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Chart and save your daily, weekly or monthly progress investing in grain and oilseed commodities to see changes and trends. Use a spreadsheet or Google finance portfolios to track the market changes.

Are you looking to expand into grain future trading? You’ve read articles and seen advertisements on this field. You’ve read how traders reap large profits on soybean futures. Until now, grain investing didn’t interest you.

Grain future trading can be volatile. This is why it’s important you understand how this market works. Otherwise, you can lose all of your money. In order to get grain and oilseed commodity markets education and training, you must do the following:

1. Understand how grains futures work by taking courses.

2. Participate in seminars to get a broad education of the grain future market.

3. Take advantage of webcasts and seminars to become familiar with grain future trading.

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

Learn about grains futures by taking courses

One of the best ways to learn about grain commodities is taking courses. You can gain a greater appreciation for this field because the instructor will likely talk about the history of grain commodity markets. The instructor will discuss the basics of a futures contract and the roles of buyers and sellers. These are essential when it comes to investing in grain futures.

I recommend: E-CADEMY of Trading gives you a history of grain and oilseed commodity markets. It focuses on futures contracts and their specifications, including the quantity and delivery date. Money-Gains also offers a course in grain and oilseed commodity markets education and training. It focuses on grain commodity trading. You’ll receive a training manual and audio tapes.

Learn how to get a general picture of the grain future market through seminars

Seminars offer you an opportunity to get a well-rounded perspective on investing in grain and oilseed commodities. Learn if this market is trending up or down. For example, factors like weather can impact the crop's prices. If there is a large demand for soybeans, the price of this commodity will go up. Seminars not only feature speakers from this industry, but you can hear professionals from governmental agencies, such as USDA (United States Department of Agriculture).

I recommend: Informa Economics is a global firm; it is a consulting firm that provides market research and analysis in the agriculture field. CME Group also provides grain and oilseed commodity markets education and training. You will learn how to manage opportunity and risks.

Learn about grain future trading through webcasts or webinars

Don't overlook these areas for getting additional training on soybean futures. You can view webcasts or webinars at your desk. In most cases, these online presentations are free. Watch speakers discussing the pitfalls of grain future trading. You can also listen to speakers who show you how to take advantage of volatility in grain future trading.

I recommend: Lind-Waldock offers webinars covering various topics on grains options. This commodities brokerage firm has an archive of webinars. MF Global offers webcasts. Here, you can learn about trading in commodities futures.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure you take advantage of the education that your grain commodities brokerage firm offers.

Grain and oilseed commodity markets allow people and companies to buy commodities such as oat, corn, soybean, wheat and rough rice. In these markets you buy the products and they are delivered at a different time. When you start trading in these markets, chances are that you are going to come across the terms listed below. Learn the meanings of grain and oilseed commodity markets terms to assist you when you choosing commodities to buy.

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

CFTC

Commodity Futures Trading Commission (CFTC) is an independent organization that works with the U.S. Government. The main purpose of the CFTC is to protect the public and independent traders from fraud.

I recommend: The New York Times Company provides articles about the CFTC. Find complete information about the responsibilities of the CFTC at the Commodity Futures Trading Commission website.

FGP

The Facility Guarantee Program, or FGP, is a U.S. Government program that provides payment guarantees to handle the financing of U.S. goods and services that are exported to other countries.

I recommend: Visit USA.gov to locate more information about the FGP. The Foreign Agricultural Service also provides details about the Facility Guarantee Program.

EMP

The Emerging Markets Program, or EMP, is a U.S. agricultural program that promotes the export and exchange of goods grown in the United States to all emerging markets around the world.

I recommend: Understand EMP better with information from United States Department of Agriculture. Federal Grants Wire also supplies information about the Emerging Markets Program.

FAS

The Foreign Agricultural Service (FAS) is a section of the United States Department of Agriculture. The main responsibility of the FAS is to oversee foreign programs the USDA. They also collect market information, handle negotiations and monitor market statistics.

I recommend: Visit the Foreign Agricultural Service website for full information on responsibilities and practices of the FAS. Find reports and more FAS information at the Government Accountability Office.

TASC

The Technical Assistance for Specialty Crops (TASC) program helps farmers in the United States with funding for projects that help improve sanitary conditions, phytosanitary and technical barriers. TASC grants are designed to help farms move into the foreign exchange markets.

I recommend: Discover more about the TESC at USDA.gov. Read the Official Export Guide for more information about the Technical Assistance for Specialty Crops Program.

QSP

The Quality Samples Program (QSP) is a U.S. Agricultural trade program that helps producers provide samples of their goods to import companies in emerging markets.

I recommend: Learn more about the QSP at the United States Department of Agriculture's website. Federal Grants Wire also provides details about the Quality Samples Program.