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| I would suggest that being a grain marketing student is always benefical to grain farmers...
and that means being a student of futures prices(including spreads/carry) as well as basis levels no matter when you make the sale.
If you don't have your own storage, then there is LESS(not no) benefit to looking at things this way.
I have said, "you pick the day and the time that you want to make the sale, and there is an 80% chance I will net a better cash price than you--EVEN IF WE SELL AT THE EXACT SAME MINUTE." This isn't because I am being arrogant or think that I am better than anyone else, just that I understand all of the pieces(spread, basis, and futures) and thus can likely(80% chance) net a better cash price when we sell at the same time.
As a HUMBLE ex-elevator manager--y'all need to look at price, spreads and basis independantly all of the time. Your average "cash" sales will get better because of it. | |
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5 ways to use basis
