A more thorough explanation:

CBT

CBT stands for Chicago Board of Trade. It is a commodities exchange where traders buy and sell futures contracts for agricultural products, such as corn, wheat, and soybeans.

Example 1: A farmer wants to sell their corn crop before it is harvested. They can sell a futures contract on the CBT, which means they agree to sell a certain amount of corn at a set price on a specific date in the future. This helps the farmer lock in a price and reduce their risk of losing money if the price of corn drops.

Example 2: A food company wants to buy soybeans to make tofu. They can buy a futures contract on the CBT, which means they agree to buy a certain amount of soybeans at a set price on a specific date in the future. This helps the company lock in a price and reduce their risk of paying more if the price of soybeans goes up.

The examples illustrate how the CBT is used as a marketplace for buying and selling futures contracts for agricultural products. These contracts help farmers and food companies manage their risk by allowing them to lock in prices for future transactions. The CBT provides a transparent and regulated platform for these transactions to take place.