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.
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price risk
9 posts tagged "price risk".
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
A Checklist Before a New Pricing Tool
Before you add a pricing contract or a futures account, write what it locks, what it costs, and who can explain the fill.
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.
Price Risk
Margin Calls in Plain Language
A margin call asks you to add funds when a futures position moves against you. It is not a bill for the grain.
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.
Price Risk
Forward Contracts and Basis Contracts
Forward contracts lock a cash price. Basis contracts lock the futures piece and leave basis open.
Price Risk
Common Mistakes When Pricing Grain Contracts
Avoid typical errors in grain contracts: ignoring basis, overselling, missing delivery terms and misunderstanding HTA and basis contracts.
Price Risk
Hedging Basics for a Small Grain Producer
How a short hedge with futures can protect a grain price, with a worked example, the role of basis, margin needs and the limits of hedging.