AgTalk Home
AgTalk Home
Search Forums | Classifieds (159) | Skins | Language
You are logged in as a guest. ( logon | register )

Help with basis contract: fall delivery and rolling vs using forward month as underlying
View previous thread :: View next thread
   Forums List -> Market TalkMessage format
 
jbweston
Posted 8/29/2016 16:58 (#5497542)
Subject: Help with basis contract: fall delivery and rolling vs using forward month as underlying



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!
Top of the page Bottom of the page


Jump to forum :
Search this forum
Printer friendly version
E-mail a link to this thread

(Delete cookies)