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| Basis Contracts…..what is everyone doing with them and why? We like using your grain marketing conscience.
What we mean by that is ask yourself what do you think you should do. But do it in a manner that aligns with your typical risk management strategy.
What increments do you usually sell in?
If you’re pricing your basis contracts you should probably be pricing it in similar increments to what you normally do.
If you have a basis contract that is 10X the the typical increment that you sell in then you should be spreading out that basis contract via several different proactive type of methods. Perhaps you are pricing some, maybe re-owning some that you price via April Calls, maybe rolling some to May, some to July, it really depends on your situation. but we like doing is trying to be pro-active via spreading out your risk. Take some of the edge off and stress and do so in a proactive method.
Here is a previous audio update from this week we sent to our clients about spreading out your risk in basis contracts. We talk about that specifically 4:50min into the audio
Listen Here: https://txt.so/wppBxp | |
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