In a van, down by the river. | I agree with Ray and Mr. Corn...though, I am a novice. Even though basis was much higher than expected once we got into new crop, it was still more than a dollar cheaper when compared to a basis rolled vs. the JUL as of early June last year. What I try to get my customers to understand is that, even if they don't plan to price corn, all the hedgers will be selling any corn (and beans) to which they have title before we jump off the cliff into the new-crop futures and basis market, and that pressure alone will be enough to bring down the basis, even if the flat pricing farmers want to withhold their supplies.
To all you hedgers out there, are you expecting another short squeeze as we roll from the JUL to the SEP? Any guesses where the JUL/SEP will be around first notice day? As a novice, I am positioned for a wider inverse than today. Should I be reconsidering? |
Placing weekend bets
