Commodity futures contract

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Commodity futures contract

An agreement to buy a specific amount of a commodity at a specified price on a particular date in the future, allowing a producer to guarantee the price of a product or raw material used in production.

Commodity Futures Contract

An agreement to buy and sell a commodity at a certain date at a certain price. For example, Investor A may make a contract with Farmer B in which A agrees to buy a certain number of bushels of B's corn at $15 per bushel. This contract must be honored whether the price of corn goes to $1 or $100 per bushel. Commodity futures contracts can help reduce volatility in the normally volatile commodity markets, but contain the risks inherent to all speculative investing. These contracts may be sold on the secondary market, but the person holding the contract at its end must take delivery of the underlying. See also: Carrying charge, Options contract.
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The findings show that introducing commodity futures to a portfolio increases the returns without a corresponding rise in risk and with the increase in risk aversion levels of the investor, allocation to commodity future tend to increase.
Cole in our new team because we believe in his leadership as well as expertise in the field of commodity future trading,” Kornemann added.
The study, entitled "The Fundamentals of Commodity Future Returns," examines trends in the commodities futures risk premium by examining data from 31 commodity futures and physical inventories between 1969 and 2006.
Xignite, the leading pure-play provider of financial web services for mission-critical corporate applications, today announced it has expanded its XigniteFutures on-demand web service with delayed quote and historical price information for commodity future contracts from seven additional U.
Shawkat Almaraghy, member of the Egyptian Exchange (EGX) board and managing director at the brokerage sector of HC Securities & Invetsment, revealed that the EGX board awaits parliament's approval on the updates to the stock market law, which permits launching a commodity futures exchange.
It invests directly in a diversified portfolio of commodity futures, forward and options contracts to obtain an exposure to various principal groups in the global commodity markets.
The focus of the Exchange now is to bring to light the impediments to growth and to develop a strategy for the next stage of development for commodity futures trading in Pakistan.
2 October 2014 -- US exchange and clearing house operator Intercontinental Exchange (NYSE: ICE) said that it has completed the transition of the Liffe London soft commodity futures and options contracts to ICE Futures Europe.
Over the last decade, commodity futures have become a popular asset class for portfolio investors, just like stocks and bonds.
Commodity Futures Trading Commission (CFTC), the federal agency that oversees the commodity futures, options and swaps industry.
Dot), Japan's premier commodity futures broker, is pleased to announce that the award winning trading platform from MultiCharts is now available through Dot Commodity.
The Risk Weighted Enhanced Commodity Ex Grains Index, which the ETF tracks, is based on a diversified basket of 20 commodity futures contracts from the sectors precious and base metals, primary commodities, and agricultural goods excluding grains.

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