Blog

Futures Contracts

07/15/2024

Futures contracts, also known as financial hub products, are traded on a financial exchange. CME Group, which owns and operates some of the largest commodity exchanges, describes a futures contract this way:

A legally binding agreement to buy or sell a standardized asset on a specific date or during a specific month.
A transaction facilitated through an exchange.

Whether it is a futures contract for crude oil, natural gas, gold, cocoa or wheat, all of these agreements have several things in common. They all have a standardized contract. They all have contracts for specific future months. And all of them can be purchased or sold at any given time prior to their contract expiration.

That last similarity – buying or selling the contract at any given time – is like the ability to buy or sell a stock. This provides some flexible hedging opportunities for propane companies.

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Testimonials

From Our Valued Customers.

“

We enjoy working with Twin Feathers. Great people who have helped our business!

Will

“

Twin Feathers has taken the burden of the everyday supply logistics off our plate and allowed us to focus on our operations in the critical times of the year. They have educated our team along the way and helped us brainstorm options/risks that fit our business model. Twin Feathers has allowed the Tevis organization to explore opportunities within the supply and hedging arena that we would not have been exposed to without the relationship.

Dave

“

We experience less angst when making a futures purchase.

Jeff

“

They not only taught us how to plan and diversify our supply, but also new ways to protect the price. They have been great at negotiating supply deals and putting plans in place to know we will be secure when the market is not. I am confident that if things get tight we will be in a better position than our competitors.

Troy

“

We can’t say enough about the high level of service the entire team provided us. We relied on them and they came through for us over and over. They are complete professionals and a pleasure to do business with.

Rick & Ann

“

It has been one of the best decisions that our company has ever made. The Twin Feathers team have looked after our interests since day one, and have executed the plan each year very well.

James

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Twin Feathers has partnered with energy firms since 1998 to provide transparent, value-driven commodity market advisory services.