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Lean Hogs Hedger

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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.

Commodity trading is not suitable for everyone. The risk of loss in trading can be substantial. This material has been prepared by a sales or trading employee or agent of Van Commodities, Inc. and is, or is in the nature of, a solicitation. This material is not a research report prepared by Van Commodities, Inc. Research Department. Please view our Risk Disclaimer.

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