|
| I got knocked out of a large 2019 wheat contract. So it goes. I write several for wheat and corn a year out that usually get kicked out. It's another way to sell carry. My leftover bushels do not get priced, this is just a way to go from being 40% to 30% sold, or whatever the situation is, similar to lifting a hedge (albeit involuntarily). If getting kicked out means all bushels are priced at that level, you are getting screwed hard.
Wheat that got kicked out yesterday was from a 20,000 bu contract for 6.52 vs next July, and I took another .22 cents of carry to write it against the Dec next year. Plan looks something like hold corn until May/June 2019, then clean bin out and store wheat from harvest until after Labor Day (when elevator has rolled to Dec). Deliver wheat in early September and be ready for corn harvest in October. Use bin 12 months a year. | |
|
Accumulator contracts
