How does the futures contract that speculators buy or sell for wheat originate?

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I know the 'spot price' for wheat is what's posted by the farmer at his grain elevator, and a end user (bakery) can buy it right there for immediate delivery. And that the future price for wheat is what I as a speculator can 'lock-in' today by buying or selling a futures contract now.

However, this contract that I purchase to hold a long position in wheat for delivery in say 6 months, How does it originate? Is it the agreement between an actual farmer and a baker that somehow finds it's way onto a futures exchange that I am able to speculate on? In which case? wouldn't all of the contracts for a given month be used up quickly given that there are many more Speculators than actual Farmers/Bakers in the marketplace trying to hedge against adverse price changes? If so how then is it possible to accommodate all the speculators who would wish to guess at what the price will be in the future? Whew! long question...sorry.
 
Growers of wheat sell contracts for future delivery to lock in the price they will get for a crop. The grower is obligated to deliver the wheat at the contract price on the specified date. The value of that contract may rise or fall with the market value of wheat, and speculators are basically gambling on the change in those prices. The grower gets the money from selling the contract and can use it to pay for seed, fuel and equipment. He also gets a fixed price for the crop when it is delivered.
The growers obligation is to the contract, not to a specific end user. The holder of the contract pays for transportation when they present the contract for delivery. The wheat harvest in the U.S.A. is huge, some years the storage elevators are all full and it has to be stored on concrete pads and covered with tarps. The USDA negotiates deals with foriegn governments to make a market for the surplus held by the operators of grain elevators. Availability hasn't been an issue since the Dust Bowl era of the 1930's.
 
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