I'm still trying to figure out what is the process of using futures for hedging purposes for those that produce commodities...say for example, a corn farmer... 1. If I predict the demand of corn will go down in December, does a corn farmer actually grow less corn and does he literately go online and short the corn futures? What do they specifically do in this situation? 2. When some of these commodities are deliverable....do these farmers literately go to the exchange and drop off say corn and hogs there? 3. If futures aren't much more different pricewise than the underlying stock, what good is it? Say if I, the farmer, thought corn demand was coming down in a few months, even if I shorted the corn futures...i still have to wait till the contract ends to make the most of my prediction....would it be no different if I just shorted the underlying stock now since it should go down by that time as well. Don't traders already consider future predictions when pricing a current stock?