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| Tell them you want a basis against July (or maybe September) instead of December. Smells like a spread play to me. Look at a corn spread chart during a summer rally. Usually the spread goes even to inverted. I would say they don't want to get hurt if we have trading action like the last 2 years (quick run up in summer months, then fall back to previous levels). By bidding December, not nearly as much of this is priced in.
If they don't and you have a futures account, you could "make your own basis" contract. Just sell a priced contract to them and then buy back futures vs. the month you want. The futures sides offset and you have locked in basis, essentially giving you a basis contract. | |
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Please help me understand the months used for basis bids
