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Lean Hogs Hedger A hedger in the lean hogs market is an individual
who uses the futures market to offset price risk when intending to sell or buy the actual lean hogs. Hedging is possible because
the lean hogs cash prices and lean hogs 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 lean hogs? Lean hogs 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 lean
hogs please contact us. One of our experienced lean hogs 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 lean hogs market using exchange
traded lean hogs futures and options.
Click here
to contact a commodities broker with experience in the lean hogs market.
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