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
- What the SEC Revealed About Annaly Capital Management, Inc.
- 3 Key Things You Can Learn from Warren Buffett
- 3 Reasons Linn Energy Is the Perfect Retirement Stock
- Natural Gas Fuels Another Solid Quarter for Kinder Morgan Inc.
- Fiat Chrysler Stock Begins Trading on the NYSE: What You Need to Know
- Motley Fool CEO Tom Gardner Talks With LinkedIn Founder Reid Hoffman