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| As I understand the lectures I have had on the grain markets this is how it goes........
I call in a forward contract Fall soybeans at the market-basis(profit) and then the buyer call the broker or floor, depending on their size, to take a position on the sale at the CBOT. If this is done there is no added risk for the buyer.
Once again, real life does not follow the classroom.
Let's face it, the buyers job is to buy product at the lowest price possible. Our job is to get the highest price possible. Any advice from a grain company should be viewed with some level of "clarity".
I suspect that the real problem is a lack of buyers. Once a market becomes condensed it is much easier for a "meeting of the minds" in pricing.
Tim
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O.K. this is getting frustrating(Basis again)
