Consider a real estate scenario where we want to predict house prices based on the square footage of the property.
If the farmer's break-even point on a bushel of soybeans is 10 per bushel and he understands that one-12 months futures contracts for soybeans are at the moment priced at 15 per bushel, it is likely to be smart for him to lock in the 15 gross sales rate per bushel by promoting complete one-yr soybean contracts to incorporate his season.