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DP from end user perspective
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Mr.Grain
Posted 4/18/2024 19:50 (#10711936 - in reply to #10711003)
Subject: RE: DP from end user perspective


AGDEAL - 4/18/2024 06:39

If a farmer looses possession doing it, stops storage but leaves futures and basis unpriced how does that work for an end user? They can control basis but how do they manage futures risk on bushels used but not bought? Any other risk to them?


If they short basis they go long futures when it is priced

Basis risk and spread risk

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