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| I know you have a decent understanding of marketing. When I first read your post, I thought you were saying the past couple weeks shows why you forward sell instead of hedge. I wondered what I was missing because the current scenario is when hedging works really well.
After rereading your post, I realized that you were saying the past couple weeks shows why a hedger would hold a position until the physical grain is sold. You are exactly right on that. It’s very tempting to exit the hedge and bank the profit but if the market continues down then that would be a big mistake.
The different ways to market grain each have their good and bad aspects. I guess which one a person decides to use comes down to what one they are most comfortable with. | |
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Hedging
