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
- 5 Things Google, Inc Management Wants You To Know
- An Investing Opportunity in Hot Air
- How Frontier Communications Can Pay More in Dividends Than It Earns
- 3 Things to Watch When National Oilwell Varco Inc. Reports Earnings
- Stock Market Myths: 7 Ways a Fool and Their Money Are Soon Parted
- The Key to Healing Broken Bones May Be Found in This Illegal Drug