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Kevin Van Trump has over 20 years of experience in the grain and livestock industry.
Producers continue to call in and e-mail asking my thoughts regarding making cash sales at these levels. My answer emphatically is YES, YES, YES!!! Even though I am conservatively bullish "PRICE" that does not necessarily mean store the bushels. Let’s think this through for a moment:
I could go on and on, but why??? The market is jumping up and down screaming to make cash sales and re-own with paper, but still many producers want to store the bushels. Remember just because you are bullish "PRICE" does not dictate storing the bushels. There are only three reasons to store corn: 1.) Low Prices 2.) Weak Basis or 3.) Good carry in the market. Think about it, "prices" are sky high, not weak. The "basis" is as strong as it can be for harvest time. And the markets are trading at a huge "inverse," not a huge "carry." As I have been saying for weeks, why store the bushels??? If you want to "speculate" on price then simply buy a call or enter into some type of limited risk bull strategy on the board. Just remember, as CEO of your farm you are a "risk-manager," NOT a "speculator." I know its tough but you have to keep the two positions separated.
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Van Trump Report
How much can we really drop? I just dont see the down side to holding on to it till Dec to Feb Time frame