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North west MN | A few weeks ago we looked at Minneapolis wheat and at the time sept wheat futures was 7.13 minus a .80 local basis so a cash price of 6.33 That same day and time you could sell July wheat futures at 7.43 minus a .30 cent local basis for a cash price of 7.13 that is 80 cents for storing until July. That would not be using any options just selling wheat out in july capturing the carry and the basis improvement you might need to take loan on the wheat for cash flow but the interest on a wheat loan is real cheap now days. 80 cents would be a nice down payment on a bin. | |
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Can you use options instead of building more tanks?
