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Pork Bellies Hedger A hedger in the pork bellies market is an individual
who uses the futures market to offset price risk when intending to sell or buy the actual pork bellies. Hedging is possible
because the pork bellies cash prices and pork bellies futures prices tend to move in the same direction. However, the difference
between the cash price and the futures price may narrow or widen. The change in the difference between the cash price and
the futures price is called basis risk. Because of the changing basis no hedge can be perfect. Where can you hedge pork bellies? Pork bellies can be hedged on the Chicago Mercantile Exchange (CME). The CME offers
a competitive and transparent market place to engage in efficient hedging strategies. If you are interested in hedging pork
bellies please contact us. One of our experienced pork bellies traders will be happy to give you a call to discuss hedging strategies
with you.
An Overview of CME Commodity Futures for Hedgers
Click on the link above to download a very informative
.pdf brochure entitled "An Overview of CME Commodity Futures for Hedgers.” It was published by the Chicago
Mercantile Exchange. This is a must read guide for any hedger considering a trade in the pork bellies market using exchange
traded pork bellies futures and options.
Click here
to contact a commodities broker with experience in the pork bellies market.
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