Hedging is not speculation but margin protection.

Managing price risk in the grain sector is no longer a matter of choice, but of survival. This was one of the main points during an international webinar featuring experts from ADM Investor Services and representatives of the global exchange industry, which Agri.bg followed live. Read more: NAZ urges urgent field trials due to the gray corn borer "Hedging is not trading in financial instruments for profit. It is a way to offset risk and avoid adverse market movements," said Ryan Easterbrook of ADM Investor Services. According to him, many companies in the agricultural sector still perceive derivatives as a speculative tool, while in fact they are a mechanism for stabilizing margins. One of the important points in the discussion was the role of speculators on the exchange. "People are needed who take the risk from those who want to get rid of it," emphasized Easterbrook. See our podcasts It is this dynamic that creates liquidity and makes the efficient functioning of futures ...