We believe that hedging and risk management is a large part of the customer’s success equation, which is why we take the time to assess the client’s needs in providing the optimal ag risk management and monitoring solutions to help control trade risk.
WHAT IS HEDGING?
Hedging is based on the principle that cash market prices and futures market prices tend to move up and down together. This movement is not necessarily identical, but it usually is close enough that it is possible to lessen the risk of a loss in the cash market by taking an opposite position in the futures market.
A hedging strategy is a prudent risk management strategy for a variety of agricultural participants from growers to processors. Here are just a few examples: