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Hedging is defined as taking equal but opposite positions in the cash and futures market. Producer hedging involved selling corn futures contracts as a temporary substitute for selling corn in the local cash market. Hedging is a temporary substitute, since the corn will eventually be sold in the cash market.
Organization | Iowa State University Extension |
Publisher | Iowa State University |
Publication Date | July, 2015 |
Publication Views | 2616 |
Material Type | Written Material |