Supply-demand controls the futures
This paper briefly discusses the futures market of petroleum and explains how futures operate. The purpose of the paper is to demonstrate that oil futures markets does no determine energy prices - it merely reflects the prices recorded through trades made in an open marketplace. A futures contract is an agreement between a buyer and a seller at a price that seems fair to both. High demand from buyers can push prices up; low demand or a willingness to sell pushes prices down. As a result, supply and demand control the futures exchange and not vice-versa. The paper goes on to explain some basic principals of the futures market including the differences between hedging and speculating on prices and marketing strategy.
Uncertainty and variability of rains both space and time is the major constraints affecting agricultural production in rain fed farming. Scientific study on the quantum and distribution of rainfall ...