1 min read
Phil Luce: Jul 29, 2021
Volatility has a lot of side effects on the mentality of a basis trader. Maybe the most dangerous is an aversion to being wrong – and when price, basis, and spreads change at breakneck speed there are LOTS of ways to feel like you were wrong. You...
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3 min read
What are the keys to creating a successful practice as a grain merchandiser?
3 min read
Market conditions may be out of a merchandiser's control, but steps can be made to tip the scales in their favor. I believe merchandising grain and...
1 min read
Phil Luce: Mar 25, 2021
Unmet expectations are the springboard for all kinds of human problems. When things don't go as expected, the likelihood of becoming irrational or...
1 min read
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,...
2 min read
A good basis trader will spend an entire career refining his/her basis trading knowledge and skills. However, every principle of basis trading is...
2 min read
Phil Luce: Aug 6, 2020
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...
1 min read
Phil Luce: Jul 15, 2020
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...
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Sherry Lorton: Jun 16, 2020
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...
2 min read
Phil Luce: May 19, 2020
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...
