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SEON | I was taking bids for delivery of Sept 2011 hard red. He offered me $5.40 CDN/bu FOB my farm. Think that works out to ~ $5.12 USD. He said it was trading at $7.08 in Chicago He explained to me how prices change and why every wheat taker applies their own basis depending on their perception of the risk involved. One thing I'm not clear on is what happens to Ontario wheat after it is picked up? It goes to a port on the great lakes somewhere (Prescott, Goderich, Port Hope Etc) but hen what? And why we need the traders and the elevators? If I have a dryer and storage and a truck and an account to trade commodities, why can't I cut out the middle man? | |
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had a nice chat with a commodities trader today....
