Central NE | Why use a basis contract at this point? I would appreciate peoples opinions on this. Wouldn't it be better to sell cash and deliver, save back 1.00 a bushel or so for worst case margin requirements and buy a futures contract?
or would the purpose of the basis contract be to capture carry that you would lose when using futures?
If you are in an area that has severe yeild reductions, local basis might get better yet. |