|
Eastern Half of Ohio | The entire grain industry is built upon the fact that cash price volatility is irrelevant hence they hedge grain to manage the futures risk and look to lock in returns to space.
I agree that harvest efficiency and drying can be a revenue source for space but your initial point was that volatility of cash prices can be used as a gauge of when returns to space are available. That is incorrect. Otherwise, Cargill would just stop hedging grain when volatility increases in the market. Net carries in the cash market drive every capital investment that is made in the commercial grain industry. | |
|
How much volatility will we get this year? Price range?
