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| Most likely that offering price later (or not) is a function of basis and spreads rather than of CBOT prices. If fall basis is the widest of the year, they should own everything they can now. Looking forward to next April/May, when the grower goes back to the field and truck deliveries dwindle, you can expect the Ethanol plant to offer Price later - the basis has already done most of the appreciation for the year & their risk of paying more (posted basis level) when the grain is priced compared to when it was delivered is much less risky than today's harvest price situation. | |
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Price Later Contracts
