AgTalk Home
AgTalk Home
Search Forums | Classifieds (4) | Skins | Language
You are logged in as a guest. ( logon | register )

Define what Hedge means???
View previous thread :: View next thread
   Forums List -> Market TalkMessage format
 
I80Farms
Posted 11/10/2007 01:41 (#235096 - in reply to #235009)
Subject: RE: Define what Hedge means???


Nebraska
This will be a rough example. You want to sell $4.00 corn but not lose control of the grain for hopes of a basis improvement. You would buy a contract (5000 bu) at $4.00 on the board to lock in price and basis would be set on the sale of the cash grain then you would exit the hedge. Futures go down you make money on Hedge. Futures go up you lose money on hedge but gain on the cash grain. Hope this is clear I might have inhaled to much NH3 tonight.
Top of the page Bottom of the page


Jump to forum :
Search this forum
Printer friendly version
E-mail a link to this thread

(Delete cookies)