Trade commodities without future contracts

[italkcash]

As someone would expect commodities are not only traded through future contracts on commodity exchanges. Farmers today, growing Tea, Oranges, Cotton, Tobacco, Wheat and tons of other every day commodities, are trading their commodities through regular markets, and not contractually affected.

This has certain benefits as the risk is close to nothing when trading the goods. A farmer can simply trade the commodity as it was any other goods from a store, and get a purchase price as he is used to.

Of course the obvious downside to this is that the less you speculate the less you can make out of the commodity and basically as a farmer you can never be guaranteed to be getting the daily contract price for the goods.