Category Archives: Index

Commodity Market and Commodities Exchange

Commodities exchanges usually trade futures contracts on commodities, for example, in a certain month, A farmer raising corn can sell a future contract on his corn, which will not be harvested for several months, and guarantee the price he will be paid when he delivers; a breakfast cereal producer buys the contract now and guarantees the price will not go up when it is delivered. This protects the farmer from price drops and the buyer from price rises.