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EC, AR | There used to be fertilizer contracts on the CBOT--i had used them several years ago to hedge my fertilizer--but I don't think there are now. The only thing that moves with fertilizer is natural gas because most of ammonia based fertilizer is made from it. Thus with natural gas near the low of the year and going into the seasonal increase in price for the heating season --it could be used as a hedge against increases in nitrogen cost. You have to figure a ratio of natural gas contracts to amount of fertilizer a contract would represent. | |
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hedging nitrogen cost?
