Texas/New Mexico Stateline | garvo - 11/25/2012 09:36
well that is the problem-might not have any new crop corn to buy-so My question is the same-the risk looks to me of not being able to buy corn at any price to finnish the cattle-
I suppose anything is possible, but I doubt your scenario would happen. There will be corn available, but at what price is the risk. That is what the market is for. It will cause rationing at to the point of a balance on need vs. supply. Revenue insurance on your crop would protect you for a $2 up in the market above the spring price if you were to need to buy corn next summer.
So say spring price is $7, then $9 would be the limit. After that I suppose you could buy calls cheap now at $9 if you are really worried about a runaway bull market. But I would think the ethanol plants would be shutting down if cash corn goes to $10, and gasoline keeps getting a little cheaper all the time. |
? about buying corn calls?
