Posted 11/18/2012 09:17 (#2703585 - in reply to #2702837) Subject: Re: Regarding contract defaults from below...
SC Iowa
Grain indemnity funds typically cover grain that has been delivered to an elevator (depending on what kind of contract), but do not cover grain that has been forward contracted and has not been delivered.
The "VeraSun" experience has encouraged more farmers to be basis traders and carry their own hedges until it is time to deliver the grain----doing so reduces flat price risk.
Regarding contract defaults from below...
