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Lena Ill | Your right bpak we have three good markets close Miss river about 40 mi ethonal plant 6 mi away in Lena and rail in Freeport 20 mi away. But nov basis levels are, Lena -42 river -441/2 rail -50 I can't sell cash in to that. Storage is not a huge problem as I can store 75% of a good crop. I don't expect a lot basis improvment before harvest so if I get a shot at -30 I will price my must ship bu's. This is not my real problem, the out years are a real problem from a risk management perspective. As I said before I want to be a seller, but need a plan going in, don't want to be reactive. My best plan to date is to make sales over the next several mo's and buy price protection ( calls) jan feb 08. History shows this a sound plan, this past year would have been a train wreck. | |
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