Futures price is an important factor affecting the formation of spot price. After the formation of the futures market, due to the authenticity, controversy and predictability of futures prices, futures prices have become the authoritative prices of this commodity in the world. Commodity producers and operators take this price as the reference price or benchmark price of commodities in their production and business activities.
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There are two paths for the interaction and influence between them: one is to directly transmit the effect and influence through hedging, and the other is to indirectly transmit the effect through futures speculators. But the latter plays a decisive role in the futures price, and the former plays an important role in the spot price, which is determined by the hedging subject in the spot market and the dominant position of futures speculators in the futures market.
Under the condition of market economy, the commodity prices in the spot market often change, and the price risk is high. Commodity producers and operators are eager to transfer price risk through hedging. If all other conditions are met at this time, the futures market of the commodity will be formed, thus forming the futures price of the commodity. It can be seen that the spot price first, and then the futures price.
Therefore, the futures price is a higher price form. In addition, although the trading mode of futures is mainly contract trading, it is always based on physical delivery. Therefore, the futures price is determined by the spot price of commodities.