|
EC SoDak | Generally, depending on the year and how it’s looking anyways, I’ll hedge up to 80% of aph by a week or so into July. Coming out of major bull runs ill typically do more as it generally follows a longterm pattern (thus why I’m arguing with triple nickle) If nationally it looks good and I look good, I’ll keep hedging a little more to take advantage of the higher prices as we generally tank between now and early September, have a dead cat bounce, then head lower to the harvest low. In drought years (esp multi year drought), those numbers drop a bit, depends on feeling. I like to use a hedge account because then if something happens (especially a small area), there is a high likelihood I’m hedged above the market and can just lifting my hedges for a profit and I’m not writing a check to the elevator. As you can imagine, you have margin calls with a hedge account you may write a check for, so you can get burnt, but it doesn’t happen that often on average. Ie: I got a hailstorm and can’t deliver but the coop says I owe them a check. In the other end, aince we peaked in May of 22, I can pull out money folks pay me in margin calls as well, kind of handy in high interest times if you have an operating note….
Like anything, it’s not 100%, it’s just finding risk mitigation you can live with. | |
|
So what happened to all this prevent plant?
