Importance of Commodity Derivatives for Serbian Agricultural Enterprises Risk Management

The transition to market economy in the agricultural sector of Serbia reinforces the need for the development of market mechanisms that would allow agricultural producers production planning, marketing, and hedging. The object of this paper is to study and analyze the relevance of commodity derivates for the development of agricultural enterprises in Serbia. Establishment and development of commodity derivatives (futures and options) in Serbia will enable agricultural companies to secure the price of agricultural products prior to harvest / picking. This research is based on two most important methods: historical method in commodity exchange development analyzes and the comparative method which is applied in the analysis of experiences of countries in transition and developed commodity exchange systems. Commodity derivatives market leads to an increase in the overall production and trade volume, but also lower interest rate on loans to the agricultural sector