Identification should include

defining a futures contract—a standardized, legal agreement to buy or sell an asset at a predetermined price and quantity on a specified date in the future
describing how futures contracts allow corporations—especially corporations that are producers and/or consumers of commodities—and investors to hedge against unfavorable price movements of the underlying assets
describing how corporations invest in the futures market to lock in a more favorable price in advance of a transaction they are required to make in the future
describing the advantages for investors looking to participate in the futures market, and how it can remove the uncertainty related to the future price of a security or a financial instrument.

What is a futures contract?
What are the advantages of using futures contracts or hedging?
Why would a company enter into a contract to buy or sell an asset at a predetermined price at a specified time in the future?
What are the risks involved if the price swings the other way?