[ThJ]

This is what futures contracts are for. They are settled with a physical delivery or in cash, depending on the contract.

Futures trading is a prediction market. If you produce a commodity, you could, for example, place a sell order that is settled on a certain date in the future, and if you’re lucky, the market price will be below that of the price set in the order.

The buyer of the future will then purchase the commodity from you at the agreed price, or for cash settled futures, he’ll pay you the difference.

If the market price is higher, the difference is paid to the buyer, if the future is cash settled.