Posted 2/20/2021 11:26 (#8846580 - in reply to #8846312) Subject: RE: Rolling Contracts Education Please
In a market inversion you will be punished the difference between the front and deferred contract. In today’s current situation you could roll out the h to k with only minimal loss 542.6-541.6= 1 cent loss on futures plus cost to roll. This would at least buy you time to see if we get more carry out to the N or U. Typically I try and only do one roll from the Z (which now is good time to set on 21 crop imo) to whichever month I plan on delivering to unless you have a situation like this year where it’s not paying you to store longer. Market is telling you to carry corn until K at the latest currently.