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Short hedger or a long hedger in corn futures

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Reference no: EM132066740

Kellogg's uses large quantities of corn in its breakfast cereal operations. Suppose the near-term weather forecast for the corn-producing states is drought-like conditions, so corn prices are expected to rise. To hedge its costs, Kellogg's decades to use the Chicago Board of Trade corn futures contracts. Should the company be a short hedger or a long hedger in corn futures?

Reference no: EM132066740

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