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| their "cap" is $4.05. But what is the floor? The way I read the contract, was if prices break, you may not have to deliver the corn, but by then prices are lower so what good does it do. While prices are "high" you can not sell these bushels since they are commited. Looked at this and thought about getting puts under it, put if prices rally, you can not take advantage of higher prices. Also, they know this corn is comming, will you get any basis "push" out of them? Can you roll the price ahead and add carry?????? Also, if they have 3 years at $4.05, how many of these guys are in thier thrid year at $2.40?
All things to consider | |
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