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S.E. Nebr. | There's a risk no matter what kind of marketing you do. I do the same every year. If I forward contract I'll buy cheap calls. I don't care how much the market goes up because I allready locked in a good profit. The calls are icing on the cake. When I lock in corn or meal for feed then I buy puts. Once again don't care how high it goes because I have prices locked in. If the price goes down then I get the lower price with the puts. Takes away alot of stress of marketing for me.
On the wheat for next year I've done some HTA's beings the basis is so wide. But gambling whether or not the basis will improve till next July. Not alot of bushels so I'm not worried. 7.31 is a very good price for me. | |
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buying calls as insurance
