I understand that hedging doesn't matter hugely if the price falls. If you are hedged at (say) $120, and the market is (say) $80, you just sacrifice the 10% of the contract and buy at $92 (Market + 10% of hedge price). Yeah, not as good as if you hadn't hedged - but on the other hand, if the market were at $160, you could buy for $120.
Unhedged, if the market varies between $80 and $160, you pay between $80 and $160. Hedged, you pay between $92 and $120. Which one looks better from a financial planning point of view? - especially if you know you can expect to break even over the year at $120, but not at $160 ...