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Ontario's middle east | Interesting thoughts John. I have never intended to imply you should be a basis trader and not flat price. The biggest risk for the farmer is in the futures part of the deal not the basis ... You can hedge that just fine with a forward contract. In fact I generally discourage producers from doing basis contracts especially here where currency is part of "basis" They usually want to do them at the wrong time and market structure so I have seen how it will shakeout. I tell them, they occasionally disagree, so we write the contract and let er rip. We don't see how we can be long term successful telling our customers to do the wrong thing. Donna and I are at the point in life that if it comes to that, we will find something else to do. I post to give a different perspective on basis and spreads and what that means to the cash markets. Probably a lot of which is just noise but hopefully it has helped some take action. If nothing else, the next time we see inverted corn futures and I say SELL!, I won't get laughed out of here. Hope the holiday goes well and shark free. I don't swim anywhere I'm not the top of the food chain..... Not surprising coming from a merchandiser? ;0)
Edited by Maizeing 1/30/2016 07:48
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$ smoking - grains and beans up? NT
