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Mccune KS | The way I see it.
Large carry over(corn)and everyone
is waiting for that x price to forward contract.
From a nobody
Forward contracting is killing
price.
In a true hedge when using the board
you have 1 price off setting another and
when the physical reaches above hedge price.
Then hedges are lifted.
Many problems with that stradigy.
Like basis etc.
But what a lot forget about is the loans.
This is all tabo and what your grandfather and father
warned you about.
But that grain is a dead asset in a bin unless
it's borrowed against.
Now most
Don't know what they would do with the money.
It must be understood its being introduced
to another risk most are warned about like stocks.
So all the above is what not to do.
But I am surprised about what is "not"
passed on as far as knowledge.
There's risk everywhere.
Shouldn't matter if land is high or low
or this or that. When you have the ingredients
to the sauce that works it no longer matters.
When your dealing with jumping in and out of markets. Law of averages.
Now if the market collapses tommarow.
Well it happens.
Look into Warren B and geico and his sub
company's.
It's in tha sauce.
As always hard to rub 2 nickels together.
Not advice on what to do.
It's just something to chew on.
If all else fails there still paying 52cents a mile
for team drivers guarantee 5000 miles a week.
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In the seemingly rare case someone wanted to talk ideas...
