substitute between saving cash for financial hedging to mitigate financial default risk, and spending on operational hedging to … mitigate operational default risk. Whereas financial hedging increases in financial leverage, operational hedging declines in … relationship by employing two proxies for operational hedging, viz., inventory and supply chain diversification, exploiting …

producers have hedging demands for commodity futures. Increases in producers' hedging demand or speculators' capital constraints … increase hedging costs via price-pressure on futures. These in turn affect producers' equilibrium hedging and supply decision … 2010. The component of the commodity futures risk premium associated with producer hedging demand rises when speculative …