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| Sat, from my point of view, hedging 2017 expected production via the CZ16 contract is fairly risky if you're doing it in June. In June no one has any idea what the 16 crop will look like.
If the crop would have been a failure then the inversion could have gotten bigger and bigger. Could be way oversold on 2016 crop losing your rear end paying margin calls as the futures go to 5+ and if you want to roll to 17 maybe the inverse has spread to $1 by then?
Really a risky bet to make in June from my point of view.
Nothing wrong with selling CZ17 corn on the CZ17 contract (or CH18 or whatever) but I sure wouldn't get too excited about selling two years of crop on this year's contracts.
Edited by dpilot83 9/16/2016 07:52
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With the bumper corn crop and huge carryover expected
