Hedging Fuel Costs: You know this might work?

I sent ManFinacial an e-mail asking:

1. How large are fuel contracts ( they are really heating oil contracts)?
2. Are large prairie farms big enough to use them?

His reply

"Good Morning,

The New York Mercantile Exchange - NYMEX's #2 Fuel contracts are 42,000 US gallons = approximately 159,000 litres (the mini contract is 21,000 usg ). http://www.nymex.com/ho_fut_descri.aspx

Yes, we can fit a strategy to your volume and timing. For example, large volume users wanting to lock in a price could enter futures contracts, but a smaller dealer or farmer may be more comfortable capping with call options or options spreads.

Feel free to contact me at your convenience."

Stephen Depow
Specializing in Fuel Contracts
Man Financial Canada Co.

I'm going to follow up with Stephen with some fuel numbers from our customers, to see if he can make it work .