What does Futures Bundle mean?
A long term futures contract that enables a seller and buyer to supply and receive delivery of a particular commodity in each consecutive quarterly delivery month. Future bundles contain a group all of the quarterly future contracts for that will allow the investor to buy a predetermined amount of futures contracts over a time frame of two, three, four, or five years.
Futures Knowledge Explains Futures Bundle
This is particularly useful for farmers and producers of commodities. It ensures them to have a market with stable prices for a long period of time. For example, a soya beans farmer may sell a futures bundle in advance and to plan cultivation and production in coming years. In the same way a gas company may make futures bundles for a steady gas market before developing gas fields.