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cropsey, il 61731 | I'm considering using an elevator basis contract to cover the rest of my 07 corn as a way of staying in the game for a little while longer, while stopping storage costs, setting my basis and collecting 80% of the current price now/Jan 1. to stop interest on my production note.
I'm not thrilled with the current basis, but it's not way out of line (25-30 cents) and we've had board price moves that are many times larger than the basis moves (so I'm not really using a basis contract by the book). Having the $ and not paying storage makes waiting until spring to price the majority of what I have left a little easier. I've done this before in late fall to get some bills paid while still being able to participate in later market gains (didn't always gain though). Anyone have some thoughts on why this is a good or bad idea?
Thanks,
Pat
Ps: With these prices it's very hard not to just sell it all and be happy. | |
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Corn basis contract
