While stored, the purchase prices would occasionally change so the first contract for a future price was created.
An agricultural revolution started around 8,500 BC, which led to trading commodities between settlements.
In 1992 an electronic platform called Globex began, offering 24-hour trading for many futures.
This move extended futures trading to a limitless, around-the-clock practice, which broadened interest further in trading commodities and futures contracts.
In addition, as supplies became more plentiful, storage was necessary; merchants sought ways to raise money while their product sat until being sold. According to Bruce Babcock, a noted commodity authority, the first recorded commodity futures trades occurred in 17 In the US during the early 1800s, agricultural commodities – notably grains – were brought from Midwest farmlands to Chicago for storage until being shipped out to the east coast.
Because agricultural products are perishable, the quality of the stored items would usually deteriorate over time.