Futures is actually a hyped commodity contract, and the term is called futures standardization contract. Like stocks, stocks are the future development of investors investing in listed companies.

The price of potential futures contracts reflects the future market trend of commodities, that is, investors who buy or sell futures contracts now think that the market outlook will rise or fall, while the spot reflects the actual consumption supply and demand relationship at that time, and futures will deviate from the actual demand price of commodities because of the participation of speculative funds. As for what adjustments will be made, if the futures speculation is overheated, the price will return to the spot price. If the spot price is undervalued, it will definitely be reflected in the futures at the beginning, so the spot price will move closer to the futures, the futures spot will affect each other, and the price will deviate, so it is necessary to make a dialectical analysis. The market ultimately determines everything, and the futures market plays a role in regulating commodity prices.

The futures market is more sensitive to the relationship between supply and demand than the spot, and the liquidity of futures is stronger than the spot. This is also the purpose of the futures market to maximize its market function, find commodity prices, pass on spot risks, increase the virtual demand of spot and reduce price fluctuations. Speculators can profit from the price difference, and the participation of speculators also increases the liquidity and value preservation of futures. Therefore, the spot price is at a relatively stable level, the uncertain factors brought by seasons, weather output and economic situation are reduced, and the purpose of hedging for those with large spot quantity is achieved.