AgTalk Home
AgTalk Home
Search Forums | Classifieds (103) | Skins | Language
You are logged in as a guest. ( logon | register )

Statistics, % of farmers with trade/hedge accounts
View previous thread :: View next thread
   Forums List -> Market TalkMessage format
 
Tileman2
Posted 3/25/2017 07:57 (#5921236 - in reply to #5920854)
Subject: RE: Statistics, % of farmers with trade/hedge accounts


NW IN
The mega-bull run appears to be over. The market for a couple of years appears much more like the pre-ethanol markets.

By that I mean board carry (sell deferred to get paid for storage) and basis appreciation.

The hedge account allows you to separate the two components of a sale...Futures and basis. If you sell the futures you can shop around for the best basis and then swap the futures with the elevator, receiving the cash price you desired.

It's about flexibility in a tight market. Even an HTA at an elevator is an implied cash sale at some point, thus limited basis negotiation.

JMHO
Top of the page Bottom of the page


Jump to forum :
Search this forum
Printer friendly version
E-mail a link to this thread

(Delete cookies)