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What to store, what to price??
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illini81
Posted 9/14/2010 09:40 (#1359128 - in reply to #1358243)
Subject: RE: What to store, what to price??


What I was getting at was to sell the best carry. If you are concerned that you missed the rally, buy some out of the money calls to own it on the board.
For example, if March prices on corn are 50 cents better than fall delivery, and beans are only 25 cents better in march, you should ship the beans and store the corn. If you think this board has a ways to go to the upside, rather than speculating with the crop you produced and possibly giving up the carry, you can be long the board by buying some cheap, out of the money calls.

EDIT- I agree with pehinric, sell the 2009 crop to reward the market and make room for the new crop.

Edited by illini81 9/14/2010 09:46
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