Futures contracts are agreements to by or sell a good at a actively traded for all major crop,for livestock ,for energy resonrces,for precious and industial metals,and for a variety of financial assets. The price specified in these contracts are set by the forces of supply and demand on major commodity exchanges and reported daily in newpapers. This source of price information is widely used both by speculators and by firms for whom the act of production may take some time.for example,your authors both heat their homes with fuel oil.each heating season,the dealer offers to sell us a predetermined amount of fuel oil at a price determined by the futures price the dealer must pay. Hence,the price we pay and the price the dealer receives is primarily determined in a market