You don't need to trade a physically settled contract for that though! Just hedge on a cash basis or hedge directly on the item you do need delivery on.
Seriously, do people enter into contracts like this in other parts of their life?
Seriously, do people enter into contracts like this in other parts of their life?
As for trading exactly the item you will need delivery on, that may be hard to find. Standardising on a contract that's "close enough" allows crude oil producers to trade with airlines, bus companies to trade with refineries, etc, even if they all care about different products.