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Why Basis contracts?
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CS_307
Posted 3/5/2024 13:21 (#10652556 - in reply to #10650938)
Subject: RE: Why Basis contracts?


Ohio

Marketing Tools Workbook - Iowa Commodity Challenge

You use a basis contract if you have a desirable basis that you think is going to soften, but also think that there will be a rally in the futures. It's not something that will work every single year, and might not work if your local elevator doesn't move their basis that much through the course of the year. 

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