The principal reason to enter into a forward contract is to minimize risk, or to reduce the probability of an adverse fluctuation in price of a commodity. By guaranteeing a price, the seller of a forward contract establishes his price. Farmers and other commodities producers gauge today's prices for the commodity against the "spot price," or the price at which the commodity may sell at the delivery date in the future. A buyer of a forward contract may expect the price of the commodity to increase by the delivery date and thus wants to lock in a lower price.