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Sell, Store, or Basis
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kst1
Posted 10/23/2018 15:18 (#7061217 - in reply to #7061194)
Subject: RE: Sell, Store, or Basis


.20 to January??????

Do you have a hedge account? On Dec 31 they'll have to roll to March futures. March is trading at .27 premium to the November right now. So if you pay storage to Dec 31 and lift the futures and sell the stored beans on Dec 31, you make .07 plus any basis appreciation. It seems like elevators should be smart enough to take that arbitrage away, but if they're not going to you should take advantage of it.


Edit.... hang on I just re-read your post because I couldn't believe it and realized I think I misunderstood. You're talking about delivering corn. I was thinking beans. Your basis should have given that away. My advice is completely null and void, sorry about that!

Edited by kst1 10/23/2018 15:22
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