A bit on "Hedging" and "Trading":

Most all products produced for international destination points are hedged for price and or currency risk....Hedging is done as a Insurance risk matter, and a routine matter, and can be found in many sourcing chains of command.... For example, the notional value of one (1) contract of coffee is about $60,000 and a futures call placed daily would over a month would create futures hedging of the amount shipped of 1.200,000....When a 90 day period ends and the futures are rolled to the next period, the value could reach 3,600,000 as far as notional value...the purpose of the future premium is to hedge the risk of coffee price rising, and this is hedged since if coffee price rises, the future rises with it.. Coffee futures trading is the most volatile of all futures....The risk of trading these actively and intraday is enormous, and the risk is bourne by the firm's capital...traders earn 200K plus percents of profit....They are trained and may have extensive registrations as brokers etc ...In short---trading is not hedging...Different risks...different temperament....