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Buxton ND | Its as good as any other paper assets you can buy or sell. Personal I'm not a big fan of sell the cash/buy a call as I would much rather use "Target Orders" above the market to have what ever you need sold NO LATER then give or take July 4th Make the sales one needs to make for what ever reason, pack the rest in the bins and sit tight til next summer.
The high end, best bet, expensive, corn option right now is the ZCN ATM at the money $3.60 for .25 Keeps you in the game til roughly June 20th for the same cost as 4-5 months commercial storage. If you do not have the storage you either pay the commercial or pay CME.
Whether using "Target Orders" and selling cash off the combine, sell cash based on ZCZ and hauling it in prior to Turkey Day or sell cash/buy a call. Or selling the carry to when ever you wanna haul it. What I love about this is it gives the COMMERCIALS the grain***** they KNOW they have the grain coming in the door***** they KNOW they can have it in a exportable position***** with YOU being payed***** you have YOUR money for YOUR grain*****
So we have give or take 2 to 2.6 bb of corn carry come Sept. 1th 2017
There are reason's behind my 2.6 btw
USDA is @ 2.4 right now, yeah their lying yada yada yada.
Whether the final yield is 170 or 176, WE HAVE TO MUCH CORN.
Even by chance its 168 WE STILL HAVE TO MUCH CORN.
Too much corn ? WE MUST EXPORT IT.
WE MUST EXPORT IT, we have too much corn.
EXPORTS have been proven for decades to be the route to get rid of our "extra's"
Each year since 2012 we have seen carry grow as producers build bins and store for $5-6 (4.50 was clearly NOT enough last summer) ((4.50 was clearly not enough 2 summers ago)) We had the "Come to Jesus" period of marketing corn IMVSO as August came to an end. We had ALOTTTTTTTTTT of that corn waiting for $5-6 marketed or HAD TO BE marketed by August 31st because of DP contracts. This statement is backed up by the numbers facts and the ZCZ16 chart. This is probably enough for a Sunday morning stir ! ! !
PS: There was a big end user of corn that probably hedged 3-6 months maybe more of their corn needs Friday morning. | |
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I read on here alot of sell the fiscal and buy back on paper.
