AgTalk Home
AgTalk Home
Search Forums | Classifieds (111) | Skins | Language
You are logged in as a guest. ( logon | register )

Would buying heating oil futures be a hedge for #2 diesel ?
View previous thread :: View next thread
   Forums List -> Market TalkMessage format
Posted 2/10/2019 20:21 (#7312018 - in reply to #7307642)
Subject: RE: Would buying heating oil futures be a hedge for #2 diesel ?

NE Iowa
Can buy heating oil call options instead of buying futures. Doesn’t have quite the exposure that playing with futures contracts will leave you with. We did that back in late December. Fuel supplier does the same thing(calls it a ceiling no floor contract), they just pass the cost along to the customer plus a fee for their services. We run as trucking business and took physical delivery of a bunch of fuel around year end and feel having the position in our own account instead of our fuel supplier helps us offset the fuel that we are forced to purchase on the road. Booking fuel doesnt do any good when it can’t be put thur our pumps, that’s where he board or option position helps
Top of the page Bottom of the page

Jump to forum :
Search this forum
Printer friendly version
E-mail a link to this thread

(Delete all cookies set by this site)