Death comes to us all. Life's but a walking shadow | Here there can be a substantial difference between forward selling the physical product and selling futures. By the time basis is fully accounted for a good part of the potential gain from the futures disappears with the sale of the physical. In order to evaluate your forward selling we need to know what exactly what you mean by forward selling and more particularly when and what you sell. Do you sell the Dec futures for the crop year in question? How much, when and how often? If you sell options how long do you hold them, until expiration? |
forward pricing
