Futurity

Futurity refers to a contract or financial agreement where a buyer commits to purchasing a product, typically agricultural or commodities, before it is produced or harvested. This arrangement allows producers to secure funding and plan ahead, while buyers lock in prices in advance, reducing market uncertainty. It's commonly used in farming, where a farmer might sell crops before harvest to ensure income and manage risk. Overall, futurities create a proactive approach to trading, balancing supply and demand expectations over time for both parties involved.