Hedging covers the techniques used to reduce exposure to adverse price moves: futures, forwards, options and swaps, usually with maturities aligned to the physical deal.
In physical commodities it applies both to product price risk (commodity futures) and to currency risk (FX forwards). It does not remove risk, it swaps it: you give up part of the upside to cap the downside.
Not every deal needs hedging. It depends on the time horizon, the size and the team’s appetite for risk. What matters is that the decision — hedge or not — is deliberate and written down.