This is typical for stock index futures, treasury bond futures, and futures on physical commodities when they are in supply (e.g. agricultural crops after the harvest).
A more advanced form of hedging that requires greater experience is to utilise stock index futures and options to partially hedge your portfolio against any decline.
The value of these indexes fluctuates based on their underlying commodities, and this value can be traded on an exchange in much the same way as stock index futures.
