Texas/New Mexico Stateline | Russ In Idaho - 3/23/2020 08:58
I agree were does industry have to hedge their products? Does JD, CIH or GM, Ford or Wrangler clothing have to hedge their products. Nope, just raise the cost of final goods.
Don't think it is that simple. Amazon and Walmart comes along and tells Wrangler we are only going to pay "$X" for those jeans, take it or leave it. Take it if you want to sell your product to us, leave it and we will get a different brand from Honduras or China.
Plenty of stories of Walmart demanding lower and lower priced products from a manufacturer, until they have broken every one, then switch to another source.
Not much different than the packer/cattle feeder in many cases.
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Get em hedged Boys !
