A baker is a perfect example of someone who would take a long position in a futures contract on wheat. If the baker can pay the spot price projected for a 3-month futures window but could not pay a higher price, then the baker will hedge (or protect) his investment in his bakery business by going long and locking in the 3-month future wheat price. In 3 month's time, he will be happy to take delivery of the wheat at the contracted price. The risk is that wheat prices might go against the trend and actually go down. In this event, the baker will pay more than if he had not hedged with the futures. However, if he does not hedge with a futures contract and the wheat price spikes upward, he may risk much worse than a higher-than-market price on his wheat.