Commodity exchange

nounStandard termFarming

A centralized market where agricultural products are bought and sold through standardized contracts.

A regulated financial market where farmers, buyers, and speculators trade contracts for agricultural goods like wheat, corn, or soybeans. These exchanges establish standard grades and quantities, allowing producers to lock in prices for future harvests to hedge against market volatility.

Heard on the job

We locked in our corn prices on the commodity exchange back in April before the drought hit.