West Central Iowa | FarmingMo - 1/15/2025 14:55
What are you going to do if you get knocked out and still owe the bushels and price is below 4.11? You've essentially locked your ceiling at 5.00 and your floor at zero
I guess you don't know how an accumulator works.
If I get knocked out I only owe them the bushels of the time that has accumulated.
So on 10000 bushels if 50% of the time, goes by till expiration, I deliver 5000 bushels @ the $5.00, and the other 5000 bushels goes back to being unpriced. If it closes above $5.00 at expiration I owe them 20000 bushels @ $5.00. Maybe other accumulator contracts are different but this is how the one I did works.
Edited by Iowa 83 1/15/2025 16:07
|
New Crop Sales
