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Anderson County Kansas | Good explanaiton rhedge. I will give a specific example. Right now our eplant 18 miles down the road is bidding -35 basis. My average basis delivered in there in June/July is steady to 10 over. That is a 35 to 45 cent gain. CZ0 is at 424'2 currently. CN1 is at 453'2. So if I were to roll my CZ0 hedges to CN1 right now I would gain 29 cents. So my gain would be 64 to 74 cents minus interest and the cost of owning the bins. So I would probably net around 40 to 45 cents a bushel profit. I have an order in to roll from cz to cn for 32 cents. I think I rolled last year for 35. There will also be some shrink to subtract, but for us its not as much as we would have letting the corn stand in the field longer due to sitting in line at the elevator waiting to dump. | |
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carry....basis.....easy money???
