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| Price later or price lower?? Nevermind, were talking about the same thing.
Free DP is a lever to get grain moving when prices don’t. Elevators don’t like DP grain because they don’t know what basis they are buying at the time of delivery, producers in a lot of casss watch the market go down till the price by date... more often than not its a loser on all sides. If your end user is rolling out a free DP program and you need to sell, lock in basis. They are offering free DP because they don’t want to pay the basis it takes to buy that next 500k bushels. DP sounds great when prices suck, but if everyone is shipping DP grain to the elevator/end user, basis will get weaker and weaker | |
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delayed pricing or price later contracts
