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Commodity brokers use forward and futures contracts for which reason? Responses The riskiness of commodity production means that many commodity producers go bankrupt before harvest
Commodity brokers use forward and futures contracts for which reason? Responses The riskiness of commodity production means that many commodity producers go bankrupt before harvest time. The riskiness of commodity production means that many commodity producers go bankrupt before harvest time. The seasonal nature of many commodities would lead to wide variations in supply and price without these contracts. The seasonal nature of many commodities would lead to wide variations in supply and price without these contracts. The raw, unprocessed nature of commodities means that there is always a third party to any commodity-purchase contract. The raw, unprocessed nature of commodities means that there is always a third party to any commodity-purchase contract. Commodities come from many different countries with very different currency exchange rates
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