Distinguish between the following: 'Commodity futures' and 'financial futures'.

The main difference between commodity and financial futures contracts are: Nature of the underlying instrument - In a commodity Futures, the underlying asset is a commodity which may be Wheat, Cotton, Pepper, Turmeric, corn, oats, soya beans, orange juice, crude oil, natural gas, gold, silver, pork-bellies etc. In a financial future, the underlying asset can be Bonds, Stocks, Stock-Index, Foreign Exchange, Euro-dollar deposits etc. A financial Future is fairly standard and there are no quality issues while a commodity instrument, quality of the underlying matters. Financial futures usually have a limited range of delivery dates based on a 3-month cycle: commodity futures often have monthly or seasonal delivery dates. Most financial futures are cash settled: commodity futures contracts may specify a delivery location.