The Possible Role of Futures Market and the Public Warehousing in Trade-financing Activity

The principal achievement of this paper is to introduce the operation of a specified‘Futures’ model and it’s practice for decision-makers of financial institutes through anexample based on the price data’s of grain futures market from EU assessment 2004 to thesedays in Hungary.Based on a theoretical foundation, the calculation model was developed in order to assistshort and long-term marketing decisions. The economical basis of the model is thecombinative use of two market institutions: public warehousing and futures market.This electronically developed and working model ‘using excel background ‘allows all ofthe participants of the market: producers, consumers, banks and traders, to use this model inimmediate calculations. In addition it helps in order to establish the own business strategy.The model can be used to analyze price influencing factors therefore; it can also be used forpolicy-making decisions for market participants as well as banks dealing with trade financingactivity.