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South Central Iowa | People should listen to the Merchandisers on this board like KornKrush, EthanolInsider, Rob Cogdill, or any others. Merchandisers deal with spreads constantly. They will all tell you it is risky and not recommended to spread old to new crop. As Ethanol Insider said below, you can't hedge new crop with a contract that expires before that crop is grown. You can bull spread old to new but don't bear spread it.
Plus, if you think there is something to this rally and we have major production issues in SA; that inversion will grow tremendously from here. Especially if we plant 90+ million acres of soybeans.
Edited by Conan the Farmer 1/19/2017 15:11
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Rolling hedges from old crop to new crop.
