There was warning of this, the futures market is not for...

There was warning of this, the futures market is not for everyone. Is the below (what do they mean by "required")a simple refusal (bad money management)to cut losses.

"Further global trading in the
ICE futures market created cotton market backwardation and Namoi Cotton was required to roll
forward cotton price risk hedges at significant losses. As a consequence of the unprecedented
trading conditions, Namoi Cotton’s half-year financial results to 31 August 2011 have been
materially impacted with extensive trading losses and significantly increased borrowings. Namoi
Cotton estimates its six month operating result to 31 August 2011 to be a loss within the range of
$50million and $55million, subject to audit review confirmation".