Commodities Futures

Source: Investopedia.com

Commodities futures, or futures contracts, are an agreement to buy or sell a commodity at a specific date in the future at a specific price. If commodities traders had to actually deliver the product, very few people would do it. Instead, they can fulfill the contract by delivering proof that the product is at the warehouse, by paying the cash difference, or by providing another contract at the market price. The most commonly reviewed commodities are oil and gold.