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Assume your suppliers cash market price is generally quoted over the futures price. If you hedge by purchasing a futures contract, a good time to
Assume your suppliers cash market price is generally quoted over the futures price. If you hedge by purchasing a futures contract, a good time to purchase the product and lift the hedge would be:
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once you have hedged, it makes no difference
when the basis is relatively weak
when the basis is relatively strong
whenever the cash market price is lowest
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