Companies directly involved in consuming, producing or selling commodities may use futures contracts to ensure guaranteed prices, reducing their risk. Farmers, mining companies and oil producers can sell contracts that match their expected output at a specified future date. Because they know how much money they’ll receive and when they’ll get it, they can invest in growing their operations with greater confidence. Similarly, companies that use those commodities can better plan their production and sales activities because they know how much their raw materials will cost.