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South Central Iowa | You might know Insider, isn't it actually regulated that elevators can't hedge old crop with new futures until that late summer timeframe? I could be explaining what I mean wrong, but you mentioned mid-90's and I believe in 96 a lot of elevators went bankrupt playing that old-new spread. That was the impetus for the regulation I am thinking of.
But to add, don't be afraid of a bull spread old to new. I do it, not as an actual spread trade, but it becomes that. Reownership of old grain and price protection on the new crop. I leg out at different times on them, but when holding both, it is a spread and is margined as such. | |
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