The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

Page THE HERALD Wednesday August 22 Farmers advised to use a hedge strategy The original design of futures markets was to help farmers and other agricultural producers improve thetr marketing and purchasing ac through the use of hedging strategies Hedging is taking a position in the futures market as a temporary substitute for the sale or purchase of the actual com or crop Hedging acts to fix prices now for anticipated future sales or purchases thereby the risk of price changes You may want to use a hedge strategy if you want to protect against the price inherent in a current or intended cash market position for instance an an harvest The result of a futures hedge is that any decrease the value of the cash market position will be offset more or less by an increase the value of the futures position For example a farmer who plans to sell his crop at harvest time can get protection from the nsk of any decrease in price by selling futures contracts when he plants his crop in the ing of cash markets and futures markets usually move together so that when the cash market falls the futures contract prices fall as well If the cash PRICES LOWIR THAN A BELLY IN A WAGONS RUT Call DENTURE THERAPY CLINIC TH Denture Therapist 72 Mill St Georgetown 8778974 7912314 Good service good coverage good price- Thats State Farm insurance ROBERT TAIT INSURANCE AGENCY LTD A St Georgetown 8731833 Like a good neighbor State Farm is there FARM INSURANCE Brian Slessor Dollars v and Sense i market price is depressed at harvest time this lower price will be more or less offset by the gain the futures contracts position when it is liquidated at a lower price The short or selling hedge can be used to predetermine the pro return from the sale of he harvest Hedging can also be used to pro tect against the risk of an tended purchase of a product be ing used by farmers and producers when they buy commodities throughout the year In the long or buying hedge the purchase of a futures contract acts as a tern substitute for the intended purchase of a cash commodity and acts to fix the of the cash pur chase For example a livestock producer makes regular purchases of corn as feed for his cattle To lock in the price of feed over the year the livestock producer buys corn futures contracts If when the producer takes actual delivery of the corn the pnce ha increased the extra cost is more or less offset by the profit on his futures con tracts when they ore sold In this way the producer can fix the price of his feed input Producers who use hedging strategies in markets have minimized the price associated with the ownership of specific commodities and often bankers are willing to lend funds to the hedging farmer on improved terms Brian Slesor is an Investment Executive with ScotiaMcLeod Questions should be directed to Brian who can be reached at 416 Call collect outside Toron Put More Muscle in your advertising CALL US TODAY CORPORATE PURCHASING AGENTS Wholesale Prices t Full Service FAX and COPIERS New and Used DESKS CABINETS SEATING etc DATA and SYSTEMS FURNITURE and LOTS MORE BuyLease 4167603393 This simple little box can transform your driveway into your own private Fuel Economy Centre Save up to what you now spend on gasoline with convenient onsite refuelling Motorists living in the have in excellent opportunity Thanks to the NOV I from Union Gas theyll be able to refill their light trucks vans or cars on site Natural Gas for Vehic NOV for a fraction of their gasoline costs In fat I you reahe savings up 015 How You Can Get In On The Savings I ind out how to tap into your home or business Natural line for truly outstanding hit I onomy all Union today and ask about the NOV I 3357319 Natural Gas for Vehicles Driving for the Bottom Line union ghs the 111 A-