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Buxton ND | On this part,
"Some here and elsewhere love to berate producers for not anywhere nearly enough forward selling but they somehow assume that just because you can sell something in May or June you will be able to deliver in Oct"
Remember when the livestock guys told the grain guys " You had a long time to lock in all time record profits, if you didn't,,, quit your whining" Seems me its the corn guys turn now. Like Gramma said "What comes around goes around" right.
Selling something in May or June,,, or the prior May or June
200 bushel corn, using the market tools out there.
50 bushels HTA or a straight 8 pure cash sell (You MUST deliver the bushels)
50 bushels of puts (this will cost money) (No MUST)
50 bushels of short hedges (this will cost money) (PLUS margin call are very possible) (No MUST)
50 bushels open to play with.
If you lift the hedgies and puts you have 150 bushels to play with.
THERE'S RISKS IN ALL 4 above AND COSTS, if one did nothing,,, 100% of the risk on those bushels, whether your bins,, your bags or commercial storage whatever's IS RISK,,, its on YOUR SHOULDERS,,, HOW MUCH HAS THAT COST YOU TO DATE ? ? ?
WHO averaged less then 50 bpa this year ?
Yeah 50 bpa x 4.472 ZCZ is poor, 50 bpa X 3.73 is POORER today, more so if you need the cash.
Only got 25 bpa farm average ? Run into town, bar or coffee shop,,,,, stand on the table and say "Who wants to fill my 4.472 corn contract/s" you have beer money for life !!!!!!!!!!!!!!! | |
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MT's Hedge Fund
