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Kansas City | I agree that holding soybeans in your account is absolutely the best option ALWAYS but with the limit money guys are working with and the tightness of ALMOST all banker's a$$'s this year. I believe that saving your margin money for better opportunities is your best bet. The first sale is hopefully the worst sale (in theory) so if that's the case it will require the most margin... this is why I said let the grain buyer carry this one. If you can afford to use your account for sales.... ALWAYS ALWAYS use your account. Tileman2 is right on that one if you have the money, but my experience is that most guys don't have unlimited margin to carry a 400+ day position in the market that requires the highest margin and makes the largest moves.
long story, short.... this is why I said let the buyer carry the risk... Money is tight, soybean margins are high, moves can be fast, furious and big. So if you take a basis hit on 5-10% of your production, you will be okay!
Again this varies from farm to farm. Thanks for the feedback! | |
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