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Leesburg, Ohio | In reply t o lazi:
I'm having trouble understanding your writings, but I disagree with your statement, "Very seldom a grain farmer does a True hedge."
Care to explain?
A grain farmer is usually long the commodity in the field or in the bin. An offsetting short position in the futures market, or buying a put, is, in fact, a "true hedge."
If you meant "Not many grain farmers use hedging at all," then I couldn't argue that point. I think the point made above about us all needing to use hedging more in the future is correct.
Edited by KDD 1/30/2010 17:59
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is it just my accountant that doesn't like the words "hedge account"?
