Futures are contracts that give the purchaser the option to buy a specified commodity at a specified price on a specified date in the future. Commodities traded this way include copper, gold, platinum, silver, crude oil, heating oil, gasoline, natural gas, corn, ethanol, oats, soybeans, soybean meal, soybean oil, rice, wheat, cattle, hogs, pork bellies, lumber, milk, cocoa, coffee, sugar, cotton, and orange juice.
Futures allow businesses to hedge their future needs for raw materials. This helps to smoothe out price fluctuations.
Related Fool Articles
- [link link title]
Recent Mentions on Fool.com
- The 1 Thing I Wish Someone Had Told Me When I First Started Investing
- Apple Pay Is the Catalyst for a Digital Wallet Revolution
- Nike, Inc. Outruns Earnings Expectations -- Again
- 5 Things Costco Wholesale Corporation's Management Wants You to Know
- 26 Things I Learned From Old Books on Investing
- Rite Aid Corporation Delivers A Huge Win