The term V-prices originates from the context of agricultural futures exchanges and refers to the prices that are traded on the respective exchanges for agricultural products such as wheat, corn, soybeans, rapeseed, potatoes or milk contracts. The "V" usually stands for contract prices or forward prices, i.e. prices that are fixed for the future as part of a contract. This pricing is based on supply and demand and is influenced by global market movements. It plays a central role in agricultural commodity trading, especially when it comes to hedging against price fluctuations.
Farmers, traders, cooperatives and processing companies use the V-prices as a guide when determining prices for their physical trading activities. The exchange prices serve as a benchmark on the basis of which many business transactions in agricultural trade are negotiated. These contract prices are particularly relevant for so-called hedging, i.e. risk protection against future price developments. By setting a V-price, market participants hedge against volatile markets, which is of strategic importance in an increasingly international agricultural trading environment.
V-prices are often mentioned in connection with delivery months, base values and quality standards. One example is futures trading in Matif rapeseed, where the V-price is fixed for a specific month (e.g. November). The prices reflect expectations, forecasts and current market events and are therefore subject to fluctuations that are influenced by weather conditions, political framework conditions or stock levels.
