Is pig enterprise hedging a seller or a buyer?
Pig-enterprise hedging is the buyer. Hedging of pig enterprises usually refers to the hedging operation of pork production enterprises in agricultural futures market or other derivatives market. In this case, the pig enterprise is the buyer. The purpose of pig enterprise hedging is to lock in or avoid risks in the market with uncertain price fluctuations by purchasing pork futures contracts or other related derivative contracts. When the pork market fluctuates, pig enterprises, as buyers of hedging, can obtain certain protection and stability. If the market price falls, the losses of pig enterprises will be partially compensated in futures trading.