been calling around to the brokerage places, getting ideas and reads on the market....
i was surprised, several come out and said the markets are becomming difficult to read,
from electronic/programed trade, then traders pushing things one way or the other, then
"investors" comming in and doing the same.......perhaps the best way to put is is the
steve winwood song "When you see a chance take it"....
The overall idea is that we think markets are going to go up....for nothing more than "they should"....we see basis improvement
in the comming months, due to some far distant images of the weather not be "record breaking" in 2017....and with a comming
report that may not be as big as some have thougt....plus business has been good on beans, and the stills have been cooking
alot of corn squezzings....
so, perhaps buying some call options in the june/july area for corn might be ok....for those that have to let go before the
end of the year for various reason....basis capture, i don't think there is any hope ...but "board price" maybe...
talk already of "marketing" beans now...with buying a put...and then if needed, do a futures contract with the local elevator, when
you think things are "better"....
wheat might be simular....lock in basic board price with put, that will leave upward movement...and do a basis contract....
but i guess the above would be mute, if you were thinking storage hedge.....
ideas ?
