During the spring ploughing, a grain enterprise signed a contract with farmers to buy 65,438+00,000 tons of corn at harvest. In July, enterprises were worried about the price drop of corn at harvest time and decided to lock the price at 1080 yuan/ton, so they sold 1000 contracts in the futures market at the price of 1080 yuan/ton for hedging.

At harvest time, the price of corn really dropped to 950 yuan/ton, and the company sold the spot corn to the feed factory at this price. At the same time, the futures price also fell to 950 yuan/ton, and enterprises repurchased 1 1,000 futures contracts at this price to hedge their positions. The 1.30 yuan/ton earned by the enterprise in the futures market is just used to offset the part that is undercharged in the spot market. In this way, they hedge to avoid the risk of adverse price changes.