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| All good explanations of a hedge. The main challenge with marketing grain (IMO) is seperating "Hedging" and "trading". Two different things. A straight cash sale for a producer is also a hedge since you have offset that downside risk. A straight cash purchase is also a hedge for a user. I see many threads on here that are more geared towards "trading" the markets as opposed to "hedging the producers risk".
The other "trap" is/are a few of the cash contracts offered by grain buyers. They appear to be a hedge but in the end may not. Point being, do not confuse a precived "risk management/hedge" contract with a flat out "origination" contract.
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Define what Hedge means???
