Quote:
Originally Posted by ChiliConCarnage
You're hedging for your actual soybeans or whatever though right? So you aren't in the trade naked. It's just a lot of leverage so it moves a bunch?
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The positions I have on the board are backed by bushels in production, which has exposure to production risk. But largely, yeah.
The bushels I have in the bin or unhedged bushels in production, though, essentially equate to a long position, so yeah, those moves hit me right in the pocket book. Not to mention the cocking around they do with the basis.