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NW Indiana | So how is that hedging? If they were booking their future inputs(corn) they would at the same time be selling future ethanol production, that is hedging. If they booked corn the other day at 3.32 like you suggest and hedged their ethanol the same day they would have been losing big. Yes they could have hedged their input at 3.32 and speculated on selling ethanol higher at a later date but that would be a good way to lose a farm, I mean ethanol plant. Marketing 101 | |
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Ethanol plant managers
