|
| You can always sell a futures position on CBOT
That way you wait until you plant or don't
Once you do the futures thing, be surer you have the margin situation under control, to not be forced out
You will be almost guarantedd to lose eventually if not enough margin, available
Once you sell Chicago, the only thing you need to do is plant or not plant and then look for the best basis you can find
The actual futures/cash price then becomes a non factor. You are looking for the best basis possible
Be sure to lift the futures when you do the physical sale or you are now a spec.
I have sold a lot of $5.00 plus SRW doing this kind of sales
Let the specs take the loss
You will lose, if wheat goes higher than your selling price on Chicago, but profit is your goal, not spec.
Do a seperate acct. if you want to spec.
I have July 12 sold for 6.64 on a chicago position, and will hold it, no matter what happens
My lender gives me unlimited margin funds. He understands the lack of risk and good prices
I do have to pay int., if I need margin funds
I have a seperate grain acct and an operating acct. at the bank, so they can monitor , if I am doing spec.
I tell them what positions are spec, which is very rare. I can even produce my daily broker acct. if they ask for it
I never do options or sell, reown and all that ritzy dazzle stuff, that some advisors want
We are buyers of corn now, on a samll scale. We always offer a premium over elevator prices
Will increase the corn purchases and likely start wheat and beans, as soon as we get more bin space
Will likely buy some 2010 beans as we hate to see a partially empty bin, unless we need it for corn and do something else with the beans
Might be a buyer of grade 3 or lower SRW, down the road. The elevator discounts are terrible for the farmer and have no reason to be so low. We can pay more and still do okay, often buying from the field. As long as people trust our bank acct. to pay, as agreed. We have done forward contracts, also We know our buying power, but you may not know us, so are local only, as of now.
Building a 75,000 bin this summer, needs to start soon. And then some [4] 5,000 bu. hoppers [approx.]for the next phase. Never ends
Point being that some will pay you more than others and can work with you on pricing your crop.
Even crops that may not get planted, our contracts are available, that can be cancelled, if done by yrs. end. Profit is always better then risk [or excessive risk]
Win-win for both sides is how we approach the marketing part of farming and buyers of corn.
That is how we manage our risk and marketing, and it just sort of expanded to doing it for others, as they like our better prices and contract options
KISS | |
|
selling srw now???
