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SC Iowa | If those ethanol plants were buying corn this summer and neither hedged it or had an offsetting ethanol sale, they were speculating no different than what they were doing in 2008---the only difference is the price level where they were doing it at...
I would think a dry mill who was lacking a satisfactory margin on the forward curve in ethanol would have been inclined to simply hedge purchases and await a better opportunity....
Most processing businesses have rather strict limits about how much flat price exposure they can have in various legs of the business...
Your scenario sounds very exciting.....and very implausible because no lender is going to let the processor have over half a year's corn supply being held as a naked position.... | |
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At What Price...
