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SC Iowa | Southfork, I wouldn't get hung up on what the grain biz you are dealing with did for somebody else months ago.....market conditions change, and with it what they may be willing to do with a cash contract..
Now, I am assuming you do NOT have the crop to fill the contract...if that is the case you need to walk in and ask them
1) What will it cost to buy out of this contract based on wheat futures at "X" price?? That way you can begin to separate out the costs associated with changes in futures price and costs associated with changes in basis and/or a buyout fee on top futures/basis changes...
2) You should also ask them: Do you have any other options for wheat I cannot deliver to fulfill my contract??
You should know what the contract delivery dates are on your existing contract---if your ending date is july 15 you would still have time for the market to move for or against you in futures....if your ending date is june 30, they could mark the contract to market on july 2 and send you a bill if you have told them you do not have the wheat...
Good luck | |
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anybody deal with bunge
