Manufacturing & Transportation
Depending on the company, currency and oil fluctuations are typically what I can create hedging strategies for.
First off, there aren't exchange traded futures contract specifically designed for diesel and propane. Heating oil is traded on the NYMEX exchange and can often be used as one way to hedge fuel costs. However, diesel and heating oil follow different seasonal trends, making a perfect hedge in the futures market more difficult. There is also a question of size because heating oil futures contracts cover 42,000 gallons. Another way to consider hedging diesel is using oil futures. The oil futures contracts traded on the CME Group are in 500 and 1000 barrels.
As for currency fluctuations, the most common situations that I create hedge strategies for are the Canadian and US dollar. These contracts are very liquid, meaning they can be quickly bought or sold on the exchange. This is especially important when wanting to put on or take off hedge positions because you know you’ll always be able to do so.