What is the goal of speculation in agriculture?

The goal of speculation in agriculture revolves around profiting from price changes by betting on the direction of an asset's movement, such as crops or agricultural commodities. Speculators engage in this practice by purchasing or selling these assets with the expectation that they can capitalize on future price fluctuations. This can involve buying low and selling high, or short selling when expecting price decreases, creating opportunities for profit based on their market predictions.

This practice contrasts with other strategies such as reducing production costs or securing stable market prices, which focus on more stable and risk-averse approaches to agricultural economics. Speculation is inherently linked to risk and market volatility, as it relies on the ability to accurately predict market trends, making it fundamentally different from strategies aimed at minimizing costs or ensuring price stability.