Commodity futures are contracts that allow buyers and sellers to agree on a price for a specific quantity of a commodity to be delivered at a future date. These commodities can include items like oil, gold, or wheat. The main purpose of these contracts is to hedge against price fluctuations or to speculate on future price movements. Traders in the futures market can profit from changes in commodity prices without actually owning the physical goods. By locking in prices, they can manage risks associated with price volatility, making commodity futures an important tool for both producers and investors.