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| How do you take advantage of free DP in a carry market?
You do so by utilizing your hedge account.
Selling the deferred futures and waiting for basis to improve.
As example, some elevators are offering free delayed price until October.
So we feel like if you want to price it, the right move might be to sell Dec futures and plan on trying to price the basis against the Dec in that time period where there is a small crunch before new crop. Typically August through September in some areas.
This is provided you aren’t in an area that is going to get overwhelmed with corn movement at that time. As example, basis pressure.
To learn more on this strategy make sure you check out todays audio comments where we go over how to take advantage of the huge carry in corn, what to do if you have DP, reasons we could rally & more.
Listen Here: https://txt.so/QTH9gG
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How to take advantage of free DP in a carry market - audio comments
