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Assume a barley producer wishes to develop a hedging strategy for the sale of 100,000 tonnes of Eastern Australian Feed Barley. Using current information about

Assume a barley producer wishes to develop a hedging strategy for the sale of 100,000 tonnes of Eastern Australian Feed Barley. Using current information about future prices from the ASX explain some of the strategies available to the producer and how the use of futures can mitigate against risk.

Current spot price $358

Futures price $292 JAN 20

$296 March 2020

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