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Basis contracts?
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Maizeing
Posted 12/14/2015 20:04 (#4959931 - in reply to #4959845)
Subject: RE: Basis contracts?


Ontario's middle east
Who says we have to sell the grain? Yes we may have risk in getting long the basis but with no risk comes no opportunity. We could be short the basis and needing grain to cover sales but we might want to own grain knowing our market will need that grain later. We could be short in one period and long in another delivery period. The spread structure generally tells which side of the street to be on.
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