How To Buy Commodity Futures May 2026

: Three months later, a freeze in Brazil causes coffee prices to jump to $1.50 per pound.

: Sarah and Alex enter a futures contract through a regulated exchange. They agree on a price of $1.10 per pound for delivery in six months. how to buy commodity futures

: Most traders like Sarah and Alex never actually touch the physical coffee. Instead, they "liquidate" or close their positions before the delivery date. : Three months later, a freeze in Brazil

Imagine Sarah, a coffee roaster who needs (the size of one standard coffee futures contract) in six months. She is worried prices will skyrocket due to a bad harvest. Meanwhile, Alex, a speculator, believes coffee prices will drop because of a predicted bumper crop. : Most traders like Sarah and Alex never

If you want to start trading like the speculator in our story, follow these steps: Basics of Futures Trading | CFTC