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Old 02-28-2008, 08:17 PM
The Bear The Bear is offline
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Re: Cotton, Oil and Currency

You want to look for resources on commercial hedging strategies in the futures markets. A number of them exist but I don't pay attention to them because I'm not a hedger. Cotton is traded on ICE, Oil on NYMEX or ICE.

I too wonder why your company would ask you this. Hedging is pretty involved and could be complicated (I don't know), and done incorrectly could produce a surprise for the company.

I don't think the types of books you mentioned are useful to you (they aren't intended for hedgers), since it will take a huge undertaking just to research HOW to hedge, you better start there.

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