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| I don't think we as producers can afford to hold the raw commodity past the time when
we are offered a basis at or better then our historical basis. Once you have gained
in basis your grain bin has done all it can for you and the rest is speculation. The
producer and his lender would do better to explore the option market with a known
exposure. To me the put option makes sense for price protection when you are planing
and growing the crop. The call option make sense to me if you have the cash for the
commodity and you feel there is still good demand.
Edited by dakotagro 2/19/2008 09:24
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Interesting Speaker the other day
