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Central Ohio | Can anyone help me thing through the the pros and cons of basis contracts? The grain would be delivered in the fall using new crop basis, which is -.20 at the moment.
My two options are A. to roll for 1 cent per roll or, B. establish from the get go whatever forward month I want, March, may, july, as my pricing month. The spread at the time of contract would be added to the basis. So it would be something like -.45 against the July.
Which would you choose and why? If setting forward months, which month?
Thanks! | |
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