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Ol’ Wisco | There’s many ways to manage their currency exposure. They could do a currency swap with a bank and then lock up the crush margin on the board. They do a ratio currency trade and forward the physicals from the crush and hedge the beans on the board. These are a few examples. There’s more than one way to skin a cat.
They won’t lift hedges and put risk on if they have a solid margin locked in. The plant needs to run, if they put on the risk and it turns against them on a spec move, that positive margin may very quickly turn negative. | |
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Question re: soybean price and currency trade - Don, Conan, IN555, others
