New Markets
Thursday, 7/23, 04:16 AM
How commodity futures work, and why they set the price of oil
- When you read that oil is at $95 or wheat is up sharply, you are almost always reading a futures price: an agreement struck today to buy or sell a commodity at a set price on a future date.
- Futures are how the world discovers the price of raw materials, and how producers and airlines protect themselves from it.