Art of Grain Merchandising

5 Things Grain Buyers May Not Tell A Grain Merchandiser

Posted by Roger Gattis

Jul 22, 2014 11:03:16 AM

The reason behind some buyers not volunteering this information to the elevator grain merchandiser isn’t necessarily deceitful; rather, it can be just a matter of the buyer himself not possessing a firm grasp on these issues. Although this seems to be more prevalent when dealing with “wet behind the ears” grain purchasers, it is possible that even someone who has been originating grain for decades doesn’t know all the nuances of our business.

1)      EVERYTHING IS NEGOTIABLE

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Topics: Basis Trading, Direct Ship, Spreads, Grain Merchandising

The 11 Rules of Basis Trading

Posted by Don White, Chairman of White Commercial Corporation

May 16, 2014 10:47:00 AM

 The Basis Trader's Rules

  1. We are in the grain business and we are basis traders.

  2. Futures are used only to fix the basis on a grain transaction and futures spreads are used only to connect purchases to sales or sales to purchases.

  3. Basis ultimately follows the market structure, thus we must develop the skills to trade the basis curve both up and down.

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Topics: Basis Trading