north central Ohio | TA1070 - 4/29/2026 04:54
So I have a question. When you talk about catching the carry, I assume you mean the difference say for example between Dec futures and March futures, which at the moment is 12.5 cents. So you must expect that difference to be wider than 12.5 cents in the future? But you also have to overcome a roll fee i assume? Just trying to learn, i guess I never understood why you don't just sell the futures in the month you plan to deliver vs rolling when you already have carry in the market.
Yes your thought process is correct. If you aren't sure on crop size a Dec HTA will give you option to sell fall delivery. Otherwise with a 12 cent carry selling the March looks like a decent deal and avoids roll charge. Most end users start pricing off the March by end of November anyway and allows you to core bins in December if you desire with a March HTA. You can also sell March and if you unexpectedly run out of bin space you can roll the March forward for the roll fee to Dec. |
Is December corn breaking out
