[Verse 1] Picture Sarah's coffee shop, she needs beans in July But harvest comes in autumn when the prices might fly She locks a contract today for delivery that's far Standardized and guaranteed, that's futures repertoire [Chorus] Commodities in contracts, no warehouse in sight Standard size and standard grade, the exchange makes it right Cash or settle, roll or hedge, paper gold instead Futures let you trade the wheat without the storage shed [Verse 2] Each contract tells the story in five standardized ways What commodity you're buying, quality that pays Quantity precisely measured, location for the trade Delivery month selected, terms that won't fade [Chorus] Commodities in contracts, no warehouse in sight Standard size and standard grade, the exchange makes it right Cash or settle, roll or hedge, paper gold instead Futures let you trade the wheat without the storage shed [Bridge] Why not own the actual corn sitting in your yard? Storage costs and spoilage make investing really hard Transportation, insurance, inspection fees compound Futures strip away the mess, just price moves up and down [Verse 3] Hedgers need protection from the price volatility Speculators chase the profits, add liquidity Arbitrageurs connect the dots between the cash and paper Clearing house stands in between, eliminating danger [Chorus] Commodities in contracts, no warehouse in sight Standard size and standard grade, the exchange makes it right Cash or settle, roll or hedge, paper gold instead Futures let you trade the wheat without the storage shed [Outro] From crude oil to copper, cattle to cocoa beans Futures make commodity investment cleaner than it seems
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