Question: Please use these two websites for the commodity market information www.cmegroup.com www.barcahart.com there is no additional information needed. Please do everything on google docs or

Please use these two websites for the commodity market information www.cmegroup.com www.barcahart.com there is no additional information needed. Please do everything on google docs or google sheets and post the link thank you.

Please use these two websites for the commodity market information www.cmegroup.com www.barcahart.com

Let us assume that it is July 23, 2021, and you run a feedlot operation Wander'Wal Fannsl in Volga, SD. Assume your feed inventory is adequate until February 1, 2022. At that time, you estimate that you will need purchase 15,000 bushels of corn in the cash market to feed your expected inyentory of cattle after February 1st. You are worried about rising corn prices and you decide to implement a hedge using Futures Contracts for com. To analyze this hedging problem, you will need the gather commodity market information and this information will provide your answers to the questions below. Questions to be answered: 1. Are you placing a long or short hedge? 2. Which contract month should you select for setting your hedge? 3. How many contracts should your purchase to protect against an unexpected increase in the price of corn in February? 4. What is futures market price of corn [at the close} for the contract month your selected when you set your hedge on July 23, 2021

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!