Even though crude oil and jet fuel are two different commodities, they are highly correlated. Therefore, they will likely function adequately as a hedge.

For example, when cross hedging a commodity such as alfalfa, corn futures, soybean meal futures, or a combi- nation of the two may be considered. Once the ...

Here's a basic example of cross commodity hedging: Cameron is a corn gluten feed (CFG) producer based out of northeastern Louisiana.

28 июл. 2021 г. · For example, soybean meal may work as a proper cross-hedge for peanut meal and soybeans as a cross-hedge for cottonseed. This could be useful ...

6 мар. 2024 г. · For example, a gold mining company expecting a fall in gold prices may not find suitable gold futures contracts for hedging. In such cases, they ...

For example, the corn futures contract is the most likely choice for cross hedging grain sorghum because milo prices should follow corn prices closely as they ...

30 авг. 2022 г. · A cross hedging example: A trader has $5,000 worth of gold and hedges $2,500 by selling platinum futures, resulting in a cross hedge.

21 дек. 2015 г. · For example, sorghum growers can use the Corn futures contract and DDG producers can use a combination of the Corn and Soybean Meal futures ...

This strategy, known as cross-hedging, involves using a different but related futures contract, such as soybean meal futures to hedge fish meal. By doing so, ...

This paper evaluates the effectiveness of cross-commodity hedging between China's base metal spot and futures markets, using daily data of metal spot and ...