In a van, down by the river... | If I do a good job of managing my spreads and inventory, an inverted market allows me to earn a margin while holding considerably less inventory. In an inverted market I am far more willing to make very large sales, then go find the corn. Having large sales to fill provides us an advantage when we're trying to help our customers get bins emptied early, etc. In a carry market I am worried about selling too much too soon because I don't want to risk being caught short basis, because as Mr. Maize likes to remind us, the basis follows the spreads...eventually. |
Should I be changing my tune right now ?
