Futures and forwards are financial contracts that obligate the buyers of the contract to purchase an asset at a pre-agreed price on a specified time in the future. The seller of the contract, on the other hand, is obligated to sell or deliver an asset at a pre-agreed price on a specified time in the future. Both forwards and futures are essentially the same in their nature.
However, forwards are more flexible contracts because they are bespoked contracts that parties can customize the underlying commodity as well as the quantity of the commodity and the dates of the transaction. On the other hand, futures are more standardized contracts that are traded on the exchanges.