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Central South Dakota | Ray,
We are constantly told sell ahead, sell ahead, lock in your profit. When it was so dry here that we couldn't germinate a wheat crop until april and were planting in the dust until the end of may, who was going to go forward contract a bunch of corn. We are constantly told as farmers to sell up to our insurance gaurentee, but when you are in an area that historcally has -.80 to -1.00 basis that doesn't work so well to guarentee your revenue. The closer you are to a 0 basis area the better revenue insurance works for the producer. I get tired of everyone quoting the futures price and pretending that is what I recieved for my grain. I also feel that the funds & micro-second trading have put the producer at a distinct disadvantage and increased our risk expotentally because they don't care about the dollar amount recieved for product, just how far can they push the market one way or another. Anbody can look back 9 months on the market and tell us what we should have done after the fact, but with so many unknown factors when your trying to predict the future, it can be quite difficult to pull the trigger sometimes.
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Ugliest of Them All
