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SC Iowa | Quite a few of the end use types buy their futures only once per year, maybe twice....ie: they buy calendar year 2011 needs in the fall of 2010....may or may not set basis at the same time......so if you look at how 2008 played out: most had bot their calendar year 2008 needs in fall of 2007 at $4 +/- 25 cents on the board, so survived the trip from $6 to $8 without incident......however, I can tell you they were scared big time in June of 2008 at the what they may have to pay for calender year 2009 coverage......but the board came down, Lehman collapsed, and the economy weakened----and they got their chance to cover calendar year for $4 or less....
now they are looking at $5 coverage, which may actually be the highest they have had to pay in past 10 years...... | |
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Anyone longing (buying) the market?
