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| Has anyone got new crop sold or hedged under 4.00 board for Dec. 21? Well I’ll be honest and I do, but luckily it’s looking like I’ll have overrun bushels of old crop that I’m thinking I can deliver against those contracts. Need some help but I think I have figured this correctly?
Dec 3.95 hedge made back in November of 20
Want to deliver old against the hedge and resell those bushels for another contract for 2021 around the 5.00 level in offers put in
So, march 21 traded 5.31 at close
So, December of 21 traded 4.58 at close
So difference totals .73 in the spread
Then, you take 3.95 contract - .05 writing fee + .73 for the spread and equal 4.63 for old crop - basis
Then you can re hedge at higher level, win win if I figured correctly? Any one ever do this before?
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Delivering old crop against new crop contracts
