Posted 3/26/2020 09:22 (#8139939 - in reply to #8139640) Subject: RE: Ethanol plant managers
They don't need to stockpile the physical corn. All the managers need to do is go long (Like I told the Local manager) and hedge 6 months grinding needs. They then liquidate the positions as they buy from the farmers. They are making a killing on basis now and with hedges if they shut the plant down they have no commitments. Why should plant managers use force majeure (which is only supposed to be used in acts of god) because they are upside down on margins. Farmers live with this everyday and we still produce.