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| The wheat thread right below got me thinking. One person said he hedged his wheat for 2018 during the runup this summer so he's going to plant a few acres. Now if I read between the lines correctly, he has agronomic reasons for wanting to grow wheat as well so I understand what he's doing.
That being said, what if it was all about profitability and you didn't have agronomic restrictions? If you had hedged wheat on the board (not with an actual grain buyer) and were now considering drilling wheat due to that hedge, is that the right thing to do?
To me, I would evaluate the profitability of different potential crops based upon today's price. If another crop was going to be more profitable and barring other factors like agronomic implications, I would choose the crop that was likely to be most profitable at today's price. If that crop was different than wheat, I would lift my wheat hedges and take the profit.
Is that the wrong way to look at it? | |
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If you hedged next years crop, should that make an impact on what you actually grow?
