[Verse 1] When farmers grow their corn and wheat They worry prices might retreat Before harvest time comes around Will market rates stay safe and sound? A futures contract makes a deal To lock in prices that are real No matter what the market does The price is set because [Chorus] Futures standardized and clean Contract terms are crystal clear Quantity quality and when Settlement date through the year No storage costs or spoilage fears Just paper trades that last for years Commodity futures pave the way For price discovery every day [Verse 2] Instead of buying tons of grain And dealing with the storage pain Investors use these contracts bright To capture commodity insight The exchange sets every single term Size and grade so traders learn Exactly what they're buying here The standards make it crystal clear [Chorus] Futures standardized and clean Contract terms are crystal clear Quantity quality and when Settlement date through the year No storage costs or spoilage fears Just paper trades that last for years Commodity futures pave the way For price discovery every day [Bridge] Hedgers manage risky price swings Speculators chase the profit rings Both together make markets flow Information helps the prices grow Physical delivery's rare you see Most close out financially [Verse 3] Oil and gold and copper too Coffee beans and cattle through Every major commodity Has futures traded actively Margin calls keep traders safe Clearinghouse accepts the faith Daily marking to the market Keeps the system working targeted [Chorus] Futures standardized and clean Contract terms are crystal clear Quantity quality and when Settlement date through the year No storage costs or spoilage fears Just paper trades that last for years Commodity futures pave the way For price discovery every day [Outro] When you want commodity exposure Futures give you clean disclosure Standardized contracts all the way Price discovery every day
← Contango vs Backwardation | Components of Commodity Returns →