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Northeast Louisiana | Ray,
I in no way intended to say that on farm storage didn't work with forward contracting, because that's exactly how I make it work. I sell through the same brokers that the large elevators use.
The question why forward sell if you have bin was a rhetorical one that I attempted, poorly, to answer. What I meant to say was that some farmers don't forward contract or hedge because they plan to sell all of their crop out of their bins during the next spring or summer. I've seen them pass up good opportunities to forward sell, and wind up having to hold their grain until the next crop is ready to harvest. In that case, storing the grain has cost them a lot of money.
I edited my original post for more clarity on the storage issue.
Nope, on farm storage is definitely the way to go. Sorry about the confusion.
Edited by Deadduck 3/27/2007 17:28
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Interesting marketing article: Why Farmers Lose In Markets?
