The country elevator is in an enviable position to serve as a price neutral conduit for grain from producers to end users. In order for this to work, you must start by always being fully hedged. Once ...
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A good basis trader will spend an entire career refining his/her basis trading knowledge and skills. However, every principle of basis trading is contingent on working off of a balanced position ...
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Why? Pre-spreading is about locking in spread structure that will support your merchandising plans. (e.g., if you plan to carry grain you need a carry spread structure). It’s best viewed as a ...
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We (human beings, that is) are strongly motivated by FOMO – Fear of Missing Out. Any decision we make before we are forced into deciding means foregoing additional opportunities, and that doesn’t ...
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I ran across this in my favorites folder the other day. I thought it a worthy reminder of how being successful in the grain elevator business is achieved by staying true to a few simple principles.
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Last spring, things in the grain world were a mess. Huge swaths of the country were late planting or not planting at all. The general sense was that this was a different kind of year, and while there ...
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Part of my job at a country elevator was buying grain from farmers. I want to be completely clear that the vast majority of my interactions were positive. Sure, some relationships were stronger ...
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What is contract integrity? Simply put, contract integrity refers to the viability and enforceability of a grain company’s policies and procedures regarding the entering into, fulfilling of, and ...
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According to recent statistics, financial fraud is on a significant upswing. Last year, 82% of businesses in the United States suffered an instance of fraud, and 50% of those businesses lost money as ...
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How many times has a farmer come into your office and told you about some "great, new marketing alternative" that the guy down the street is offering... and wants to know why you're not? This has ...
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