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Hedging
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Gerb NWIA
Posted 5/18/2023 15:41 (#10234088 - in reply to #10234062)
Subject: RE: Hedging


What you do is called forward selling or contracting. That’s how I’ve been told.
You are correct that a true hedger will not exit the position until the physical grain is sold.
I don’t understand what has happened the last couple weeks that would make forward selling better than hedging.
The main difference between the two is that the basis is or is not set. The basis for NC has not moved for a while around here. Local crop results will decide what the basis does.
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