Renville Minnesota | Dave Cen.Ia - 2/23/2017 10:06
"Anything sold ahead should be sold on the board and margind by the seller vs hiding behind another party."
I guess it's all in the perspective but .... in a forward contract (at least the ones I am exposed to) it appears to me that the producer is taking all the risk and it is the processor or intermediate handler is covering risk (possibly known as hiding behind another party) to control the situation.
In regards to spec activity, planting the crop is a spec trade, is it not? And finally, improving the bottom line can be affected from the sales side as well as the purchase side. Maximizing both would certainly be to one's advantage.
Speculation by definition is the hope of gain with risk of loss. The unsold grain in my bin is speculation. i think those years in the past where we could insure a profit were the only years I haven't used speculation in some form..... I'd respectfully challenge anyone who says they do not speculate in marketing. |
Lots of talk about new crop sales...
