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So if your a crap marketer you got bailed out today
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Chief Illiniwek
Posted 5/20/2020 07:35 (#8268908 - in reply to #8268331)
Subject: RE: So if your a crap marketer you got bailed out today

West central IL
Do you not see the flaw in your logic? Yes an elevator doesn't have more than a very small speculative position at any one time. But their income isn't in production, it's in storage. Another reason they CAN'T speculate is because of the law, which is set up that way so that farmers can fairly confidently store grain at a commercial facility without constant worry that the owner isn't on the wrong side of the market and facing potential bankruptcy.

Don't get me wrong, I get what you're saying and it's a nice safe way to make money with bins. But if I was an "elevator" I'd set my board price the day that corn went in the bin. But I'm a farmer, so first my presold bushels that I can't store go to town. Then there's also presold bushels that go in the bin along usually with some unsold bushels. But that generally sits unhedged until Nov to early Jan depending on the year. I'm not going to hedge during the harvest low.
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