Price Risk
Questions to Ask Before an HTA Contract
Hedge-to-arrive contracts fix a futures reference and leave basis open. Ask who rolls, who posts margin, and when it ends.
Tag
basis
12 posts tagged "basis".
Price Risk
Storage Cost Versus Hoping for a Better Price
Holding grain has a cost: money, quality risk, and a bin you may need. Compare that cost with the later bid before you wait.
Price Risk
Old-Crop and New-Crop Price Gaps
Old-crop and new-crop prices answer different seasons. A wide gap is a clue about nearby tightness, not a promise.
Grain Markets
Cash Sale Now or Delivery Later
A spot sale turns grain into money now. A later delivery keeps a bid and uses your bins. They are different sales.
Grain Markets
Mistakes When Comparing Elevator Bids
Two cash bids are comparable only after you match the futures month, the discounts, and the delivery window.
Grain Markets
From the Trading Pit to the Screen
Grain futures moved from shouting pits to electronic books. The screen is faster. Your local cash bid is still local.
Price Risk
Mistakes When Rolling a Futures Hedge
Rolling a hedge moves it to a later month. The spread, the bushels you still have, and the contract clause all matter.
Grain Markets
What Carry in a Futures Curve Suggests
Carry means a later futures month costs more than a nearby one. Compare that slope with your real storage cost.
Grain Markets
Why a Nearby Feed Mill Can Lift a Bid
A feed mill short of nearby grain can lift the local cash bid even when the futures price does not move.
Price Risk
A Hedge Is Not a Price Forecast
Hedging locks in a relationship to a futures price. It does not predict where the market will go next.
Grain Markets
How a Country Elevator Builds a Cash Bid
See how futures, local basis, freight, and handling turn into the cash bid on an elevator board.
Grain Markets
What Does Basis Mean in Grain Markets?
Basis is the gap between a local cash grain price and the futures price. Learn how it is calculated, what moves it and why it matters.