A hedging transaction which involves buying futures contracts (long futures) to protect an investor against possible increases in the price of commodities. The investor will take delivery of the underlying commodity, and thus will be able to lock in a price for a future date. Also, a manufacturer may buy futures on a specific raw material commodity in order to be able to secure it at a fixed price later in the future. This hedge helps in controlling costs against price fluctuations (in a volatile market).
It is also called a long hedge.
