Commercial hedgers

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Commercial hedgers

Companies that take futures positions in commodities so that they can guarantee prices at which they will buy raw materials or sell their products.

Commercial Hedgers

Companies that take positions (often long positions) on the futures market for their operations. That is, commercial hedgers buy futures contracts in order to secure the price for the commodities they will need for their business purposes at a later date. Commercial hedgers seek to reduce the risk of the rising costs of materials later by guaranteeing their prices now.
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CME Group has a long tradition of offering and managing effective, physically delivered risk management tools for the commercial hedger.
Clients include commercial hedgers and commercial foreign exchange clients.
NGFA is the nation's largest trade association comprising commercial hedgers of grains, oilseeds, feed and feed ingredients, and grain products.
Commercial hedgers, who represent around 65 per cent of all futures and options on futures contracts in effect (open interest) are afraid crude prices have risen too fast in too short a time and are hedging against the expected price retrenchment.
If the IRS persists in its view, most commercial hedgers will give up exchange-traded futures and options as hedging vehicles.
This validates the importance of OTC derivatives for commercial hedgers of risk as despite the increases in costs coming their way, the need is still there," says Jiro Okochi, CEO & Co-Founder of Reval, who hosted "Rules, Rules, Rules: Impacts from Derivative Regulation Under Dodd-Frank.
Since 1939, professional traders, commercial hedgers, portfolio managers and speculators around the world have come to rely on The CRB Commodity Yearbook to help them navigate the uncertainties of the commodity markets.
This week's report showed commercial hedgers increasing short positions slightly over last week, indicating their sentiment that prices are likely to fall further before rising again.
Since 1939, professional traders, commercial hedgers, portfolio managers, and speculators around the world have come to rely on The CRB Commodity Yearbook to help then navigate the uncertainties of the commodities markets.
com, @Trading_Tech), headquartered in Chicago, develops high-performance trading software for proprietary traders, brokers, money managers, CTAs, hedge funds, commercial hedgers and other professional traders.
The Commodity Futures Trading Commission's Commitment of Traders report last week showed little change from the previous week, when commercial hedgers established small futures positions offering some protection from falling prices in the physical market.
If there is a lot of hedging being done by commercial hedgers, then you have to be prepared for when those hedgers buy them back, because that would be a bullish signal.
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