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| I am no expert and not giving any advice with this reply. First, if someone makes a blanket statement that you are wrong or right to utilize a basis contract, you are assuming he knows everything about your situation. You know your local market as well as anyone. If you see a deferred basis that you think is favorable and you plan on delivering and pricing in that period, it may be a good move to set the basis. I see a scenario where deferred basis could get very wide if you are hauling when the wall of farmer corn wants to move There will be a time between now and harvest this most likely will happen. I also agree with whoever said to focus on the futures price once you have basis set. Get an offer in place with your buyer. | |
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Why Basis contracts?
