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| I believe the elevator does take a long position, sorta in your name as any gains or losses on that contract are yours not the elevators. I do know ownership of the grain passes to the elevator so he can sell it and does not have to have it in inventory. Also, I assume this is grain that has been delivered and not a basis contract for future delivery. If the grain is at the elevator a partial payment bases on price at contract day can be received. If the futures position gains value you will receive the rest of withheld base plus the futures gain. If futures position loses value, you will receive less of the withheld payment and may have to pay elevator. | |
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So Met With The Banker Again
