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NW Iowa | I think if you are looking at locking in 10,000 gallons of fuel a mini crude contract would fit very well. If you go buy diesel at $2.00 for example times 10,000 gallons you are talking a total value of $20,000 worth of product. If you buy a deferred crude month at $52.00 you are looking at a total value of a mini of $26,000. Looks like it would be a pretty adequate hedge. I have had a full contract since late April and that was my mindset, how can I lock in these prices for the foreseeable future. | |
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Hedging fuel needs multiple years out
