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- [Voiceover] A three-dollar box of corn cereal stays at roughly the same price day-to-day and week-to-week. But corn prices can change daily. Sometimes by a few cents, sometimes by a lot more. Why does the cost of processed food generally stay quite stable, even though the crops that go into them have prices that fluctuate? Its partly thanks to the futures market. The futures market allows the people who sell and buy large quantities of corn to insulate you, a consumer, from those changes without going out of business themself. Lets meet our corn producer, this farmer. Of course, she is always looking to sell her corn at a high price. And on the other side, our corn user, this cereal company, is always looking to buy corn at a low price. Now, the farmer has a little bit of a problem, because her whole crop gets harvested at once. Lots and lots of farmers will be harvesting at the same time, and the huge supply can send the price falling. And even though that price might be appealing
