|
| If you rolled to the CN at +30, then back to the Z IF the spread narowed you would pick up 10 cents. If you went back out then again at +35 you would pick up 15.
Calculated FC is about 40 cents on the Z10/N11 however if prices drift lower and the spread stays at 30 cents the % of FC will actually be more. (less intrest cost with lower prices) If you have the on farm space getting out the the N may make some sense, if it does tug back into 20 that means the basis has probably gotten better so you could have a choice to bring the hedge back and set basis vs the Z and price the corn. The spreads are like a compass to the grain merchandiser. | |
|
Hypothetical question
