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| In an earlier post, somebody noticed the correlation between the stock price of MOS {symbol] and the price of corn
If you do a google on MOS you will find the Co. name and what they do etc. which helps to explain the correlation
For those like myself that are willing to price one and 2 yrs. in advance, [if the price is right], the obvious danger is that input cost could inflate and leave less margin/profit/acre
There must be some way to make use of the correlation of MOS stock price and hedged corn to eliminate most of the possible inflationary input costs, leaving the production end the biggest variable
My goal is to price at a level that gives me decent profit/acre and eliminate as much risk as possible
Hedging futures gives me a way to price 100% of my crop and when I know my actual production, then one merely has to do a delivery contract and lift the paper positions. The basis then becomes the thing to watch and actual price is eliminated from the equation. This what a true hedge does for you. Don't get caught up in spec. Ask yourself if your elevator would be doing all these in and out positions. They don't and they don't spec.
There must be a way to use the purchase or sale of MOS stock to eliminate the possible inflated input costs, of 2 yrs out[more or less] pricing of corn
I just can't seem to think of a way to make this possible
Any ideas??? | |
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MOS
