Commodity futures contracts are essential tools for price protection. However, even the most well-executed hedge carries an inherent uncertainty: Basis Risk in Commodity Futures. This risk arises when the price of the futures contract does not perfectly track the price of the physical commodity being hedged. Consequently, even if the market moves as expected, the hedge may not fully protect the profit margin. At Crestmont Group, we actively manage this nuanced exposure. We ensure our clients understand and mitigate Basis Risk Challenge in Commodity Futures Contracts, turning potential gaps into predictable variables.