Before the advent / history of futures trading,
any producer of a given commodity (e.g. a farmer growing wheat, soy or corn) often would be at the mercy of a commodity dealer when it came to selling his product at his / her desired price level.
Not exact matches
This could
give China a stake in the lowest - cost oil
producer and major exporter
of the
commodity that Beijing will continue to use in growing volumes in the foreseeable future.
The quality
of a
given commodity may differ slightly, but it is essentially uniform across
producers.
As we have often written, when we buy shares
of a
commodity producer, we attempt to do so at a share price that
gives us free optionality.