CTRM for Ags & Softs
Introduction to Grains , Beans and Seeds
Dry agricultural bulk commodities , like grains , beans and rice , are widely traded around the globe . Used in food products for human consumption , animal feed , and production of edible oils ( and recently in the production of motor fuels ), these commodities are perhaps the most critical commodities traded today and have well-established industrial processes for their production , transportation , distribution , storage , and transformation .
Overview
While each crop has unique physical characteristics , uses and derivative products , grains , beans , rice and other dry seed crops generally share a somewhat common origin , handling and logistics chain which can be schematically represented as follows :
Trading in food and feed grains is the oldest known commercial activity . However , with the increase of global trade in commodities over the last 100 years , the markets have become more complex and standardization of commercial agreements has become more important . Given that grain crops are not homogenous in their quality or physical characteristics , throughout the logistics chain farmers , elevator operators , processors and traders must establish , track and price these commodities based upon characteristics . In the US , the Federal Grain Inspection Service , a department within the US Department of Agriculture ( USDA ), was established in 1976 to help ensure a standardized process for grading such crops . The FGIS provides a number of services that standardize the quality and grade factors and ensure consistent valuation of US crop products . From the FGIS website – “ Across America , U . S . grain , rice , and other commodities flow from farm to elevator to destinations around the
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world . GIPSA ’ s Federal Grain Inspection Service ( FGIS ) helps move our Nation ’ s harvest into the marketplace by providing farmers , handlers , processors , exporters , and international buyers with sampling , inspection , process
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