In strategic, long-term hedging, there are few no-brainers. There are also few 2-for-1s. When they occur simultaneously, you seize the opportunity. It appears manufacturers have such an opportunity in natural gas, at least those manufacturers who plan to be around for a while and like cheap electricity and ethylene.
Much Cheaper than Oil (WSJ, 3-Jun-11)
"Under the burden of the persistent supply glut, natural gas was among the worst-performing commodities in 2010. Prices of raw materials from crude oil to copper, and agricultural staples such as wheat and cotton, have all touched multiyear highs in recent months, but natural gas may be receiving a boost as investors look for cheaper physical assets. 'Natural gas has not really participated in these huge commodity moves,' a trader said. 'As an investor, do I want to buy oil at $100, or natural gas at $4.50?'"...