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CORRECTED: Tennessee Congressman calling for FTC to make "immediate evaluation" of grain basis issue
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Rowdy Gains
Posted 9/8/2007 14:53 (#200450 - in reply to #200437)
Subject: RE: CORRECTED: Tennessee Congressman calling for FTC to make "immediate evaluation" of grain basis i


While I generally agree with your points Plowboy, I do see a problem with lack of convergence with the lead contracts. Tends to negate the value of hedging. The solution is simple, a delivery point for those contracts, then those contracts represent the true commodity, and basis can reflect transportation, storage, local demand, etc.
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