West Central MN (between MMF and Larson's) | grower3 - 11/19/2024 13:07
555 is correct. They are selling a call however they are not giving you the entire premium while obligating you to deliver bushels to them if it hits. If you wanted to you could sell the call yourself, keep the entire premium and deliver your bushels wherever you see fit.
Correct. This gives you flexibility and more up front.
If we get a big rally, you will be on Margin call though. If you’re only doing a smaller percentage though it shouldn’t be a big issue since the other corn you have is worth more too. |
Explaining this offer from local ethanol plant.
