Spot trading of agricultural products refers to activities in which buyers and sellers of agricultural products conduct transactions through actual delivery in real life. In spot trading, buyers and sellers transfer and pay for commodities directly rather than through futures contracts or other financial derivatives. This trading method allows buyers and sellers to obtain physical commodities directly without having to wait for the futures contract to expire to achieve delivery. For example, if farmers have a large amount of wheat and want to sell it to a bread manufacturer, they can directly reach an agreement and conduct spot transactions. The farmer will deliver the wheat to the bread manufacturer and receive corresponding payment.

Spot trading of agricultural products has many advantages. First, buyers and sellers can directly obtain physical commodities without worrying about risks and costs, such as margins and transaction fees for futures contracts. In addition, spot trading can help supply and demand in the agricultural product market match more flexibly, which is beneficial to improving efficiency and reducing price fluctuations.

It should be noted that risks in spot trading of agricultural products also exist. For example, price fluctuations may expose buyers and sellers to the risk of loss during the transaction. In addition, since spot trading is not regulated by an exchange, there may be risks of trading breach of trust or fraud.

In general, spot trading of agricultural products is a method of buying and selling physical commodities, which can help the agricultural product market meet supply and demand more flexibly, but at the same time, attention must be paid to risks and transaction compliance issues.