Northeast Nebraska and Candelaria Philippines | 1234 - 2/4/2014 21:03
I've been listening to this argument about the purpose and use basis for some time now and I come to believe that basis is just a "nasty little trick" to allow grain buyers to fug the price whenever the futures price is inconvenient. Take Kggonzo's example above. The cash price for the next three months is essentially the same. ADM doesn't want to pay for storage or risk (carry) and tells it suppliers: "see that higher futures price for April, etc. we just don't believe we have play by those rules so take a hike."
Can somebody convince me otherwise?
I agree 100%. Like I said they think they are so smart..... but I think they may get burnt this time. |
end users might start singing a different tune
