EFP (Exchange of Futures for Physicals) transactions always comprise a commodity and a futures component. The contracting parties agree to exchange commodities and futures contracts at the same time. The contracting parties decide independently of each other whether and when they want to fix the price on the exchange. The supplier of the commodity will sell futures at a time that is favorable for him, while the buyer of the commodity will buy futures at a (probably) different time. The price for the spot commodity is the closing price of the previous day's futures plus/minus an agreed difference. The futures position is booked at the closing price of the previous day.
