![](/profile/get-photo.asp?memberid=35550&type=profile&rnd=279) Death comes to us all. Life's but a walking shadow | If I understand how deferred pricing operates the producer fixes the basis and maybe receives a part payment but defers fixing the futures portion of the price until some future date, correct? In addition the grain can be sold by the merchant at any time?
If that's the case then the producer essentially carries all (or most) of the price risk. The merchant has no need to hedge the price, correct?
So my question becomes: " What percent of the crop is marketed in this way"? |