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How elevators trade grain
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RayJenkins
Posted 2/5/2014 09:04 (#3664208 - in reply to #3664143)
Subject: RE: How elevators trade grain


SC Iowa		Both parties are looking for a "riskless" transaction

Let's say you agree on a price, but have to lift your hedge to complete it rather than go through the exchange process..

if the market moves even a half cent from your price, that is $2,500 on a 500,000 bushel transaction

there is enough risk in this business as it is...

why accept risk when you don't have to??
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