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| Interesting. I have tried to get out of a basis contract with a local elevator before (futures was still not set). The situation was that I was concerned my wheat was going to be damaged by an upcoming forecasted freeze and I wanted to reduce my basis exposure in case the freeze ended up being worse than expected.
They said to do so would cost me $0.25/bushel. The difference between how basis was at the time I exited and how it was when I made the contract would be added or subtracted to/from that $0.25 depending on whether it was in my favor or not.
I was expecting to either pay or be compensated for the change in basis between when I got in and when I was trying to get out but I was not expecting the $0.25 extra. | |
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what percent sold are you on new crop?
