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| I don’t disagree with your observations…
However …..the decision to deliver via the exchange or deliver via the cash market is simply a basis decision.
Flat price has no bearing.
I’ll add….that to “deliver “ one must has a short posn in the futures market. If I could get paid more for delivering to the processor, to the packer, or etc….I would buy in my short futures and deliver to one of those markets…..If not, I’d let the CME have them.
The difference described above is simply the basis. No one cares what the flat price is when making a delivery calc.
Edited by Rod@night 2/8/2024 21:24
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Cattle
