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Red River Valley | As the price of futures go up the 40% that you have left goes up with it, if you are short the futures and the price goes to zero than you are going to lose both on the futures position and the 40% of unsold grain along with the fact that you have another crop to harvest at 30.00 now if you own a little bit of land that $30.00 corn will bring land well above where it was yesterday, then there is that crop in 2012,2013,2014 ect.
when you are in the business of raising or drilling or mineing commadities you are always long future production.
now if you are 100% sold to a cash buyer than you could get burned by going long but that would be a specultive position. | |
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How do you price/protect 'unknown' production?
