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| Why not just open a spec acct and retire from farming
Can you explain to me why advice to buy and sell options is nothing but spec
If it goes to 8.50 you lose, if it goes to ??? you win
Doesn't anybody believe in a true hedge anymore
I hate to see people advice spec. moves when all the question was about, was locking in a decent price
Is marketing part spec?? Yes, but don't make it more spec, especially if COP and margin of profit is all the producer really wants
Depending on your area basis, some 6.00 wheat can be had or very close to 6.00
Why spec with that price???
Either start selling or wait, depending on your decision
But at least make it a true hedge, or sale
I have to hedge, because we don't have the ability to make sales on far out months
Our system is not as flexible for marketing choices,so I have to do the futures price and wait for a time, closer to delivery before anybody offers a contract, of any kind
Only option is pay 25 cents and let somebody else put up any possible margin, but over the yrs. that is too much
The down side is one has to have unlimited margin available, which can be a problem for some
Example: sell wheat for 2012 and then see it go 2.00 higher and put up the margin
It will even out, in the end when the physical is sold, but you need 2.00 for every bu. sold | |
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please educate me on some marketing
