Interpreting hedging transaction. Mascagni Company manufactures and sells pasta products. The cost of pasta products depends primarily on the cost of the commodities the company uses as ingredients. On January 1, Year 4, Mascagni Company had excess inventories of commodities that it had acquired at a cost of \(\$ 100,000\). The company can use those commodities later to produce pasta products, or it can sell the commodities now to others. To hedge against the possible decline in price of the commodities, Mascagni Company sold commodity futures, obligating the company to deliver the commodities at the end of February for a price to be received then of \(\$ 120,000\).

Is this hedge a cash-flow hedge or a fair-value hedge? Explain your answer.