Hedging with Agricultural Futures

Futures market participants fall into two general categories: hedgers and speculators. The word hedge means protection. The dictionary states that to hedge is “to try to avoid or lessen a loss by making counterbalancing investments…” In the context of futures trading, that is precisely what a hedge is.

This guide will cover:

• The agricultural markets
• Hedging with futures and basis
• Futures hedging strategies
• Options on futures hedging strategies