Full explanation
Mechanics: (1) SELL (short) — sell wheat/maize futures on MATIF at autumn sowing, aiming to lock price for future sale. Example: farmer sows 1,000 ha of wheat forecasting 6,000 t harvest. Sells 120 MATIF contracts (50 t each) at USD 240/t in October. At July harvest spot is USD 210/t — farmer sells physical grain at this price BUT futures gain USD 30/t × 6,000 t = USD 180k; (2) BASIS — the difference between futures (MATIF) and Ukrainian CPT price. April 2026: MATIF wheat USD 255/t, Ukrainian CPT USD 222/t → basis −USD 33/t. Costs: (1) margin (3–10% of notional), (2) broker commissions (USD 5–15 per contract), (3) margin calls. Access for Ukrainian farmers: IBKR (USD 10k minimum), ADMIS, StoneX Financial Europe; via agri trading firms (Cargill Solutions Ukraine, Nibulon Hedge).