Commodity Futures Markets

By Mario Ritter

Broadcast: November 11, 2003

This is Steve Ember with the VOA Special English Agriculture Report.
Consider the life of a crop farmer. One year, the growing conditions are excellent. The farmer has a huge crop. But so do the other farmers. When they all sell their crops, prices 1)go down.
Next year, conditions are poor. Prices go up. But the farmers have less to sell.
These are the risks when farmers take a crop to market at harvest time. With supply highest, prices are lowest. And there is always the danger of a bad harvest.
To control risk, farmers may use commodity¹ contracts. These are agreements to buy or sell a product for a set price within a period of time. Commodity contracts represent financial protection against changes in price.
In the eighteen-hundreds, progress in transportation and communications permitted new markets to be built and linked. The Chicago Board of Trade is one of the oldest of these markets. It opened in eighteen-forty-eight.
At first, farmers received immediate² payment³ as crops arrived at the market by horse or train. Soon, people recognized a better system: Guarantee the price of goods that would arrive in the future. Traders called these 2)guarantees forward contracts. A farmer could buy a contract and know exactly how much money to expect.
By eighteen-sixty-five, the Chicago Board of Trade set rules for trade in futures⁴. Futures are contracts that rarely involve anything real, except money. Farmers still sell their crops at harvest time. Market forces still set the prices. But farmers can use futures to protect themselves if they sell at a loss. The contracts pay the difference between the price they hoped for and the price they received.
Farmers are not the only ones who trade in futures. Companies buy futures to guarantee costs for materials.
The Chicago Mercantile Exchange is the biggest commodities⁵ market in the United States. Traders sell futures for agricultural and energy products, valuable metals -- even weather.
A futures market could not operate without another kind of trader. 3)Speculators try to guess the direction of commodity prices to make a profit.
Speculators can cause big changes in the price of futures. But the Commodity Futures Trading Commission⁷ in Washington says research suggests they do not affect the price of goods. This federal⁸ agency⁹ says money from speculators helps provide the kind of continuous¹⁰ activity that is part of a healthy market.
This VOA Special English Agriculture Report was written by Mario Ritter. This is Steve Ember.

注释:
1) go down  下降
2) guarantee [7^ArEn5ti:] n.保证，担保
3) speculator⁶ [5spekjuleitE] n.投机者

1 commodity   

n.日用品，商品，物品

参考例句：

• The authorities took measures to roll commodity price back.当局采取措施使物价全面回降。
• Commodity prices remain stable and there are plenty of goods on the market.商品价格稳定，市场货源充足。

2 immediate   

adj.立即的；直接的，最接近的；紧靠的

参考例句：

• His immediate neighbours felt it their duty to call.他的近邻认为他们有责任去拜访。
• We declared ourselves for the immediate convocation of the meeting.我们主张立即召开这个会议。

3 payment   

n.付款，支付，偿还，偿还，报应

参考例句：

• I gave ten pounds in payment for the goods I bought.我买那些东西付了10英镑。
• This last payment will wipe out your debt to me.这最后一笔付款将了结你欠我的债务。

4 futures   

n.期货，期货交易

参考例句：

• He continued his operations in cotton futures.他继续进行棉花期货交易。
• Cotton futures are selling at high prices.棉花期货交易的卖价是很高的。

5 commodities   

商品( commodity的名词复数 )； 农产品； 有价值的物品； 有用的东西

参考例句：

• rice, flour and other basic commodities 稻米、面粉和其他基本商品
• The manufacturers in some countries dumped their surplus commodities abroad. 一些国家的制造商向国外倾销过剩产品。

6 speculator   

n.投机者，投机商人，思索家

参考例句：

• He was a sinister and crafty speculator.他是一个险诈的投机商。
• The stake was large,and Harkness was a daring speculator.赌注不小，而哈克尼斯又是一个大胆的投机家。

7 commission   

n.委托，授权，委员会，拥金，回扣，委任状

参考例句：

• The salesman can get commission on everything he sells.这个售货员能得到所售每件货物的佣金。
• The commission is made up of five people,including two women.委员会由五人组成，其中包括两名妇女。

8 federal   

adj.联盟的；联邦的；(美国)联邦政府的

参考例句：

• Switzerland is a federal republic.瑞士是一个联邦共和国。
• The schools are screaming for federal aid.那些学校强烈要求联邦政府的援助。

9 agency   

n.经办；代理；代理处

参考例句：

• This disease is spread through the agency of insects.这种疾病是通过昆虫媒介传播的。
• He spoke in the person of Xinhua News Agency.他代表新华社讲话。

10 continuous   

adj.继续的，连续的，持续的，延伸的

参考例句：

• She finally got in after 10 years'continuous effort.坚持不懈地努力了十年后，她终于当选了。
• We must be continuous to study.我们必须不断学习。