I do not understand the sentence : “A firm that produces breakfast products that use use corn as in input is short in the corn spot market, as it benefits when corn prices drop and its input costs fall. Consequently, the firm will take (opposite) long position in a futures market to hedge the commodity price risk.” For instance, if the locked price in the futures contract is 13€/kg corn so the firm will go long/buy 39€ for 3kg corn in the futures. But let’s say at the term of the futures contract, the spot price of corn is 10€/kg. So the firm will make a loss of 9€? What is the point of buying and then selling? By the way, why does the breakfast products industry sell its input corn? It needs it to realize its products. Or I supposed I missed something.
Thank you for your help