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Aberdeen MS | Just remember the limits also go to the downside as well. Who knows what will happen by fall. If it goes down, you will be capped at a higher "trigger" yield, possibly costing a lot of money if your actual production is low and have forward contracts to fill.
In the scope of the current volatility that has been in the markets for this year, I take nothing for granted. All my policies are going to be RA this year. $1.50 for corn, $3 for beans, $2 for wheat. Not that big of swings when you look back.
With what the funds have done to the top side of the markets, it could very easily be down more than the limits when the true price discovery enters the commodity markets.
Just a bit of food for thought. | |
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