Posted 1/11/2010 08:59 (#1016491 - in reply to #1016486) Subject: Re: How do you price/protect 'unknown' production?
Central Missouri
In theory price can go to zero and that is the max risk. In practicality the odds of that are close to zero. It would have to be a great depression scenario to get corn close to zero. Closer to 2.00 per bushel is your max risk on a long position 99.9% of the time but there is that outlier that could take anything close to zero.
How do you price/protect 'unknown' production?
