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Boone Co. Iowa | I will echo Sheep Farmer. I have never done an accumulator, and I signed up for my first contract a week or 2 ago. Just 5000 bushels of corn. Could double to 10,000. But, my talking with the grain buyer, and going over scenarios and asking questions, I am comfortable with having it on the books.
It is getting me $5 on the board for new crop corn. And worst case scenario, I have to deliver 10,000 at $5 on the board.
My understanding is that it makes sense in a downtrending or sideways trending market. I figure with the big corn carryout, probably not a bad idea. My goal is to have about 15-20% of my crop priced using accumulator contracts. And have around 30-40% of my crop priced with normal HTA contracts. So, 45% to 60% of my expected production priced using those 2 tools.
Again, this is the first time I have used accumulators - not exactly sure where I will end up.
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Accumulators - A Rant
