West Central Iowa | FarmingMo - 1/15/2025 16:09
I know exactly how work. If you sign up 20k bushel and you get knocked out you owe them the entire 20k bushel whether 1 bu or 19,999 were priced before you got knocked out.
So if you get knocked out with let's say 1k bushels priced. Then you're still obligated 19k more that is unpriced and the market has dropped 50 cents.
Which company are you using for the accumulator? Yes there are some modified ones that have a guaranteed price below the knockout level and such. But I've never seen one that doesn't require the full commitment of bushels either way.
So your saying only 5% of the time is going to accumulated before I get knocked out. It could happen, but not very likely since we're coming into the key marketing period. I won't go overboard, but it looks most likely to end up in the range. The way I look @ it, the worst part about it is not being able to price the double up bushel that I need to account for if I have to double up, I guess I could buy a put to protect those bushels, but I'll probably just limit the amount I do with accumulators and do some other marketing with my other bushels. |
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