LawrenceWelk - 6/29/2024 00:53
Kooiker - 6/28/2024 12:13
LawrenceWelk - 6/29/2024 00:07 Any Ag Banker should have enough brains to understand margin money for a hedge account. Otherwise you need a different Ag Banker. You need a separate line of credit dedicated soley to margin money/marketing. A $100 of margin money per acre is a good starting point. If it exceeds the $100 per acre it's rare. But the banker will understand and if they shut you down, you did something wrong on your end.
$100/acre is ~50 cents/bushel +/- on corn if you go all in on hedges
Market moving 50 cents is rare? Maxing out your LOC and being liquidated out of your position is a good way to lose on both ends of the stick.
Yes when you forward sell according to seasonal trends, moving up more than $0.50 a bushel is very rare. At the moment my marketing line is $164 an acre. I just did the math. $100 is a good starting point. No competent banker is not going to exit you out of your positions, it would be death for you, and more then likely a loss for the bank also. This theroy of the bank not giving you more margin money is a farce, they will only hurt themselves in the end.
Hedge Accounts - Nice Loan from the Market today
