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Breckenridge, MI | Have a hedge on a load of Holsteins I thought would be fat at the end of this month but my cattle buyer says hold them until the middle of May. I think I just assume carry the risk in the cash market until then which means I'm not going to roll my hedge - I just want to get out. Which brings up the question: in your opinion would you take your lumps now and get out tomorrow, or wait and hope futures come back down before the April contact expires? I'm sold at $116 so I'm not even pretending to hope to breakeven on the hedge but I don't want to buy it back at 130 if the contract will expire at 120 next Friday. Opinions?
Hindsight I should have agreed to the -12 basis I was offered in August. | |
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Need to lift a hedge in the next 8 days . . .
