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A palm oil producer expects to have 100,000 tons of crude palm oil (CPO) to sell in six months. The CPO futures contract traded by

A palm oil producer expects to have 100,000 tons of crude palm oil (CPO) to sell in six months. The CPO futures contract traded by the Mdex is for the delivery of 25 tons per contract. How can the palm oil producer use the contract for hedging? From the producers viewpoint, what are the pros and cons of hedging?

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