Contracts are written before production. They always have a time as well as a strike price. If you cannot deliver, you have to make up the difference on the spot market at current prices. If you don't, your broker will do so.
It does not happen that someone cannot pay. You are not allowed to buy the contract without sufficient funds to cover a potential loss, and they do monitor the situation and will sell you out long before you are in over you head.
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Today's Featured Article - Box Plow Blues - by Tom Schwarz. One of the first implements most tractor owners obtain is the box plow. For very little money, this piece of equipment promises to plow and flatten any hill or vale on your ranch road or farm. At least that's what I thought! As simple as a box plow appears, it can be rather challenging to make work correctly. In our sandy soils of Florida, traction is king. You can never have wide enough tires or heavy enough weights to get all the traction you want … unless you own a monster tractor. U
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