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Advisor

Re: Bailing out of corn

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man, only 30 days till you need cash. thats scary.

In short cash situations, I like basis contracts, cause they pay me 75% of spot until I settle on futures. This helps in this type of situation where I think basis is strong and futures may improve, but I need $$$.

YMMV; I don't know how contracts work in USA, but thats how things work for me here in Canada (i.e. our laws mandate an advance on basis contracts).

 

Your basis may go up-- each area is different for supply; my area is oversupplied, so basis remains crap.

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Veteran Contributor

Re: Bailing out of corn

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I sold some for $7.50 today, ethanol plant was full first half of feb so had to do second half. Just getting hard to keep hOlding with the e plants shutting down, I think if corn gets to $8 they will all be close and my export market will have a negative basis
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Frequent Contributor

Re: Bailing out of corn

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Rsw...id take the 750 on half n reown most on paper...if u got as much as u say u got left jus makes sense
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Senior Contributor

Re: Bailing out of corn

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Well, what are you going to be upset about.   50 cent drop and still holding or a 50 cent rally and sold out before the rally.   Take  your pick, if a 50 cent drop is no big deal, then hold and you can't go wrong unless it was a dollar drop,   Really hard to sell on the way down if you get stubborn. 

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Frequent Contributor

Re: Bailing out of corn

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50 cents is a large move..pik it up either way it moves.. if the funds are goin to get it u mite as well too
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Senior Advisor

Re: Bailing out of corn

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I've never understood selling the cash and buying paper.  What is the benefit?

1.  Get rid of the physical so you have no risk of damage

2.  Use the money to pay off debt

 

What is the down side?

1.  Pay brokerage fees or risk margin calls

2.  Historically, reowning does not pay

 

 

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Honored Advisor

Re: Bailing out of corn

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It looks like someone did bail out of corn yesterday........price is higher this morning.    Smiley Wink

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Veteran Advisor

Re: Bailing out of corn

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I hope enough people sell at the $7 level, and make the profits they want of course, to let the market move to $8 so that I can finish up my corn sales for 2012 and make the profit that I want.

 

Nice overnight rally going on, both corn and soybeans. If weather looks dicey at all this spring and summer, should be great opportunities to cash forward contract the 2013 production. Unless you listened to the really smart guys and sold before the rally started.

 

But maybe $5 a bushel works in some cases for making money...if you don't have $250 plus fert and lime expenses, if you don't have to buy $300 and up hybrid seed corn, and if you don't have any rent expenses. Oh, and if you can get the neighbor to do all the field work for you and not charge you. Otherwise, in the real world, we need high corn prices to make money.

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Senior Contributor

Re: Bailing out of corn

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How long you been farming corn?  i would be doing scale up selling all year, unless you are one of those permabull farmers that has more money than sence.

 

 For now, since you are holding a bunch of corn, why not sell 25-30% now, 25-30% in two-three weeks, 25-30% in 3-5 weeks. and hold the rest until "your gut tells you to sell." 

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Senior Contributor

Re: Bailing out of corn

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Yes, I never did sell any corn yesterday and I see the market is up. That's not right, the market only goes up after I sell some!!!!!!!

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