|
| Cowboy,
That sounds like a straight cash contract. With an HTA, you set at a futures price, but leave the basis open. IE, basis today for 08 NC is $1.33. I think that will get better, so I can lock the board price, and let the basis ride.
Checked with the main elevator I deal with. No cash contracts for 09, only HTA's, and they are charging for them. Seems margin calls are getting in their pocket. $.19/bu for a July 09 HTA. Can buy a July 09 $8.00 put for $.42. Then you don't have delivery risk, etc. There is always a chance here we will have a wet fall and not get wheat planted. Thinking that put don't look too bad, but hate to sink over $2000 in it 2 years out, too.
Edited by Pofarmer 2/5/2008 13:09
| |
|
Early Notes.
