East Central Ia | Rockman - 6/24/2020 20:27
+1000
DP should be illegal.
These -bases contracts- locked in with future open are killing us also.
I posted a similar post couple years ago. One of our resident Grain buyers said, DP is necessary because he had a patron that had a scheduled hospital visit and he needed to haul his grain before hand....
I have never done a DP contract. But I like basis contracts and see no problem with them. If a buyer has to bid up to get grain to move their only option is to do it with basis. If you like the basis but not the futures price move it on a basis contract.
We do this a lot in the winter months when our processors need a constant supply of grain and push basis to get it, especially during periods of bad weather. We have a heated shop for the trucks and more time to move it then and can get an advance payment on a percentage of those bushels if we choose. |
The worst thing you could do
