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Not going to fill contracts, what would you do?
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Hayinhere
Posted 7/18/2012 23:48 (#2493701 - in reply to #2493665)
Subject: RE: Not going to fill contracts, what would you do?


Central NE

Wait and see how much corn you harvest and how short you might be.  If you are going to need corn to cover contracts or feed cattle, start thinking like a buyer and not a seller because as of now that is what you are.  What do you think you should do as a corn buyer?   I would enter an offsetting position on the board before I would hand over cash and do an outright buyout this early.

As to the option of rolling forward, your price would not really be 3.85, it would be $3.85+2.60 = $6.45.   You would receive only 3.85 in cash and the rest would cover your marketing loss from this year but $6.45 is the price being offered with the roll.

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