|
| I too margined all my corn from 2012 from about 5.15 to 8 something. Sure it sucked looking at what I could have made that year vs what I made I still showed a nice profit.. The only way to cure the fear or margin calls, is to make margin calls. Once you make the big margin calls, and then in down market get the free loan from excess margin, you will not care. It works both ways. The safety and comfort of locking in profit far out way any margin calls.
The lack of fear of margin calls allowed me to sell 2 more years right out the gate in sept or October of 2012, knowing that futures price plugged into the insurance revenue equation and my cost of production number GUARUNTEED a 150 per acre profit year 1 and a 50 per acre profit year 2. The 150 per acre was based on aph. If you produce over aph, you banked more yield times price and had only upside potential. Same thing for year 2.
SAT I think you hate my insurance comments. But if you were offered breakeven on price potential and pure upside based on your production potential/capabilities would you not get bullheaded and gh heck yeah I can produce an extra 15-20 bushels in my sleep. What would you do? I'm confident in my farming capabilities that I'm going to produce the best crop I am and grow my way out. To me that should be the barometer by which I make money anyways, correct?
Just trying to show what the futures market offers sometimes if you are willing to take it.
Now at these low prices margin calls might suck because at these levels you may not be able to lock in profit. Really nothing to do with margin calls. | |
|
Broker commission
