Liffe offers weather-risk protection
By FWi staff
WEATHER risk can be protected following the launch this week of a new contract on the London International Financial Futures and Options Exchange (Liffe).
A grower can calculate how much financial impact an unseasonal month or longer might have on the value of his crops, then take cover on the futures market against that event happening.
The grain trade has yet to assess how useful this new contract may be, but it expects Liffes weather futures will benefit certain farmers who grow highly perishable or pick-your-own crops.
It may also appeal to those with other diversification enterprises that rely on public attendance, along with show and event organisers.
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