International Business Machines Corporation
GUIDING AGRIBUSINESS PRODUCER DECISIONS REGARDING FUTURES CONTRACTS

Abstract:

Guiding agribusiness producer prescriptive decisions is provided. A first risk coefficient and a first profit coefficient corresponding to selling a commodity via a traditional market and a second risk coefficient and a second profit coefficient corresponding to selling the commodity via a futures market are calculated. A minimized level of risk is calculated based on the first and second risk coefficient and information in a profile received from a producer of the commodity. A maximized level of profit is calculated based on the first and second profit coefficient and information in the profile received from the producer of the commodity. A recommendation is sent to a dashboard with a justification including calculations of the minimized level of risk and the maximized level of profit, a first percentage of the commodity to sell via the futures market and a second percentage of the commodity to sell via the traditional market.