The diff. between Hedge with options and Hedge with Futures

Options give you the rights to buy or sell the underlying goods, so when you hedge with options, you can still gain from the upside of the price variation since you don't have the obligations to buy or sell something. You just let go the options you purchased.

Futures give you the obligations, instead of rights, you will lose the opportunity of gaining from the upside of the price vairation as the loss from your futures should offset the gain of your funds.

Futures give you a method to lock in your current profits or cash flows.
Options have different payoff patterns that are very flexible. You can design different payoff patterns (e.g. spreads, straddle, collar) based on your belief of the future price movement of the underlying asset (e.g. stock index, currency exchange rate, interest yield curve).