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| Rice, I asked if you bought some cash corn because you were referring to merchandising which is the act of buying a product and selling it at a profit. (Hopefully). What you are doing is selling or marketing your crop. The only way you really capture the carry on a hedge is to sell the deferred contract that is higher than the nearby contract. Which you have done. If the market goes lower and you lift or buy back your short position, you are no longer protected to the downside. The carry you locked in could be lost in flat price.
Edited by Kornkrush 10/23/2016 17:22
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Corn merchandising question
