As spot price and customer demand are independent，this paper investigates a two-stage procurement risk management model based on portfolio contracts and spot market with limited capacity． An algorithm is proposed to identify active contracts and derive the optimal procurement strategy． Moreover，a numerical example is introduced to study the impacts of capacity in the spot market，spot price volatility and demand vola-tility on the optimal procurement strategy． Given the distribution functions of demand and spot market price， as the capacity of spot market increases，the retailer should decrease the optimal reservation amounts of active contracts as well as active contract with the lowest execution cost，and as spot price and demand become more and more volatile，the retailer should enhance the optimal reservation amounts of active contracts as well as ac-tive contract with the highest execution cost，but lessen the reservation amount of active contract with the low-est execution cost．