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Expected production of corn and hedge

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Reference no: EM131060961

A corn farmer argues: "I do not use futures contracts for hedging. My real risk is not the price of the corn. It is that my whole crop gets wiped out by the weather". Discuss this viewpoint. Should the farmer estimate his or her expected production of corn and hedge to try to lock in a price for expected production?

Reference no: EM131060961

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