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| No defense or offense either way.
Simply,
When the demand for futures exceeds the demand for cash grain….as is possible in inverted markets… The only viable solution for the short hedge is to get away from the problem/ demand. The problem being demand for futures rather than the demand for cash. This is accomplished by bidding for grain and subsequently hedging those purchases against an option month whereby the delivery function has an opportunity to function. Alternatively….one could cover their eyes and simply go with “ no bid”. There is no inherent need for the grain business to serve any one producer or user. It’s a lot of folks Playing the game of musical chairs…Won’t get paid for being a hero. | |
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Basis month debate again…..
