Agrarian Economy 2016 T. 9 № 1-2:58-62

Prospects of development futures market in agrarian sector of economy

О. Sadura, candidate of economic sciences
М. Bogach, candidate of economic sciences
Lviv National Agrarian University

https://doi.org/10.31734/agrarecon2016.01.058

ANNOTATION

The main essence of the futures market is characterized. The main reasons of its appearing connected with minimizing the price risks; increase the farmers’ creditworthiness, what will provide the economy of funds and will let to insure prices by market participants are outlined. The advantages of the futures market to the ordi-nary one are specified. They consist of the fact that all contracts at the market are standardized and corre-sponded to the delivery dates, guaranteeing the high liquidity of the market. It is analyzed the attempts to run the futures mechanisms in the agricultural market in Ukraine and it is outlined the prospects of their develop-ment. The futures market will let the buyers and sellers to hedge their price risks. That is why fluctuations at world markets will not influence the farmers’ income and the agrarian brunch of our country.

KEY WORDS

futures, hedging, exchange trading, spot market, agrarian exchange

FULL TEXT

LINK

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