Commodity futures contract

(redirected from Commodity Future)

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.
References in periodicals archive ?
Over the years, there have been regulatory structural and operational changes in commodity future market, to improve market practices in various dimensions, it said.
This paper adds to the literature by reviewing the Indian commodity future market for its diversifying properties as this region of study for in this particular perspective is found rare.
Market-makers play an important role in the capital market by promoting liquidity in the market though buying and selling commodity future contracts in return for a bid/ask spread.
Commodity Futures Trading Commission announced that it obtained a $16M penalty and injunction pursuant to a federal court's entry of a consent order against defendants Kraft Foods Group, Inc.
The US Commodity Futures Trading Commission is investigating crypto exchange, BitMEX, for some of its client deals.
ISLAMABAD: The commodity futures market in Pakistan has witnessed rapid growth since 2007 owing to regular regulatory, structural and operational changes, said Pakistan Mercantile Exchange Limited (PMEX) in its latest report.
The Commodity Futures Trading Commissions (CFTC) Agricultural Advisory Committee (AAC) announced that it will hold a public meeting on April 11, 2019 in Overland Park, Kansas.
Houston, TX, December 03, 2018 --(PR.com)-- BP, the Intercontinental Exchange (ICE), The US Commodity Futures Trading Commission (CFTC), Ernst & Young, The North American Energy Standards Board (NAESB) and others will meet next week to discuss how blockchain's distributed ledger technology could be adopted into the natural gas trade cycle.
The SEC noted that there has been a proliferation of free training seminars on such activities particularly trading in foreign exchange, commodity futures contracts, CDFs and similar derivatives.
Commodity futures markets provide both price discovery and risk management opportunities for agricultural producers and agribusiness managers.
The United States Commodity Futures Trading Commission (CFTC) (http://www.cftc.gov/PressRoom/PressReleases/pr7678-18#PrRoWMBL) announced Wednesday that it has filed a lawsuit against the founders of My Big Coin, a cryptocurrency venture that allegedly scammed investors out of $6 million.
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.

Full browser ?