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07 Corn - Pricing Strategies and Storage
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Thud
Posted 1/28/2007 14:22 (#95637 - in reply to #95629)
Subject: Re: 07 Corn - Pricing Strategies and Storage


Near-north Ontario, French River
Might try doing some forward contracts for delivery at harvest, then covering those sales with calls? Eliminates the need for more bins, gets you cash when you need it and the calls allow you to possibly gain from higher CBOT in the future. Think long term, do you forsee a perpetual increase in corn acres where you would need the extra storage every year, or is your bump in acres a short term type of thing? How much storage would you be adding ?
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