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Commodity futures are the agreements made by the buyers and the sellers for buying or selling a raw material at a particular date in the future.
The main areas of commodities are energy, food and metals.
Foods like wheat, sugar and meat are the most popular in the category of food futures.
For energy futures gasoline and oil are mostly on demand and metal futures are silver, copper and gold.Sellers and buyers, both benefit from the commodity futures as they set a price for the buying or selling of the commodity in the future, which reduces the risk of experiencing loss if the price drops, for the seller as well as prevents the risks of purchasing the commodities at a higher rate for the buyer, if the price goes up.
The price of these commodities change on a weekly or daily basis, which makes it easier when there is a contract where the price is fixed by both parties.With the Deep History of Commodity Prices it is easier to evaluate the rise and fall in prices of the commodities like, with the rise in the price of the commodity, the buyer of the futures agreement makes the profit as he purchases the commodity at a lower-rate that was agreed upon and can successfully sell it at a much higher market price.
If the price of the commodity falls, the futures seller makes the profit as he gets to purchase the commodity at lower market price, yet, sell it to the buyer at the much higher contract-price.With the knowledge about the Deep History of Commodity Prices and having access to Cot Historical Data, one can easily make investments after evaluating the Stock Market History thoroughly.