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Little River, TX | There is a lot I do not understand about forward contracting.
I had not considered increased input cost. Possibly here should also be a provision in a contract for escalating expenses.
Contracting crop delivery appears to me the equal to betting on an inside straight.
I am from an old school, one where you honored your obligations. Still it may be true, we honor a verbal agreement but a contract is something to be broken.
A what if: if you had contracted 100,000 Bu of Corn at $6 and the price fell to less than $1.00 would expect to be paid the contracted amount?
Somewhere someone is planning on receiving the commodity contracted for at the agreed price.
To each their own. | |
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Forward Contracting Grain
