Pittsburg, Kansas | Kornkrush - 5/3/2017 11:25 What I found was the basis traders had an average $.10 wider basis than the flat price sellers and the futures fix sellers. The flat price sellers and the futures fix sellers had an average price which was $.40 better than the basis sellers. (Some basis has not been priced yet and a few have been rolled 3 times. Costing them the spread and the fee to roll). There were a select few how have sold very good basis on deferred deliveries yet if they priced today, they would still under perform the flat price seller and the HTA seller. Thanks for that honesty and insight. My long term problem with basis contracts is three fold. First, any time I thought I might want to do a basis contract the places I might want to do it with quoted me a lousy basis. Second I am locked into a delivery point, even if that point is full and says "sorry, can't take the grain now, were full". Third the guy that is doing the contracting I hope for heavens sake is actually educated in such things and is not purposely trying to loose money for the company he represents so likely I am dealing with a sharper knife than myself, which usually does not end up in my favor. Maybe this post just proves my third point. John |
School of Hard Knock, from the Basis sucks thread
