Iowa Quality Hay - 3/4/2024 10:09
We use HTAs and forward contracts on our farm. I don't understand the appeal of a Basis Contract. It seems to me people are worried about the elevator "screwing" them over pennies yet leaving dollars at risk.
Basis contracts should be used in inverted markets
If not used in inverted markets it can leave dollars also
Basis contracts in carry markets don't work
Also some areas basis is very volatile
Have seen high pro spring wheat basis change by a dollar or more almost every year for 20 plus years | 
Why Basis contracts?
