|
East of Broken Bow | No it isn't. Our local Co-Op offers DP, and one of the things that is in the paperwork you sign is that you cannot come get your grain, and you have until their deadline to sell it.
I don't see how the elevator has any 'risk' with DP. If corn goes up $1 and they don't have it hedged, they can just pay you $1 under board for your DP corn, and there is nothing you can do about it. When the deadline hits, it gets sold. In fact, historically, the basis widens in the last 2 weeks or so before DP expires, and then miraculously narrows back down within days of the DP expiration date. | |
|
DP from end user perspective
