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The desert of MN. | Long time reader and first time poster in the market talk forum. First I would like to say I have learned a lot from this forum and appreciate all the charts and info people are willing to share. I have also learned to sell when things are profitable and wade through some of the BS on here. This will be my 6th year farming with my dad and 3rd year trying to market my grain. We are mostly a GBS (grow bin sell) type of operation. I don't like to forward contract until I can be certain we are going to have a crop. We farm dry land sand and really are 2-3 weeks away from a drought most years and the corn will curl 9-10 years at some point. In the past we would just wait for the spring price run up and get what we could in May and June spot cash price. The last couple years I was able to make some of my best corn and bean sales locking in a May price back in February. Well after last year of -.70 basis and selling a lot of corn under 3.50 I decided to try a couple basis contracts. We sell to ADM on the river in St. Paul and I was able to get a basis contract for May at -.31 and June at -.34 for about 3/4 of my corn bushels. I'm starting to run out of time on the May contract and thinking of rolling to June. As of now that would cost me $.08-.10. There are no fees to roll just the difference in futures gets added to the basis. So my question is should I roll or take the 3.50 I could get now? I can also split the contract if I want. Should I roll some of it to spread my risk some? I know guys were talking about 4.20 CBOT but when? Oh and yes we still have a lot of snow on the ground and frost to melt but I still think we will only be a week late to start planting. Sand does have its benefits at times?? TIA. | |
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Looking for help with a Basis contract.
