| Tank2516 - 9/19/2018 06:18
Wouldn’t that set a predecent so the next time (if there ever is one ) prices rise the grower (seller) can just cancel the contract. Farmer historically are way under sold so I doubt there will be any of what you are talking about. Yup, it sure would. There’s always a certain level of counter party risk. I always have maintained you can shear a sheep every year, but only skin him once. I suppose the temptation would/could be there for the contractor to default and put the huge windfall in his hedging account in his pocket and walk away. Would also think there would be serious blowback on doing something like that. |
grain companies cancelling contracts
