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| We have no storage on farm. I have 75% of my 2012 beans in storage at local mill which costs me. I am speculating the market will go up. My question, IS THERE ANY REASON TO STORE? Should I be selling basis , for example, on March futures which would waive my storage fees.
Tell me if any of this is wrong. If, today,I sell the basis on March futures. To calculate basis amount.
Basis= (MAR fut) - (todays cash)
Therefore, todays cash will equal cash amount of MAR cash if nothing changes.
In this scenario, if nothing changed till MAR came due, would I be ahead because I didn't pay storage fees?
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Am I doing this wrong?
