sw ontario | rednwia - 1/12/2021 13:20
Only problem they have is if they go above their borrowing limit, but if they show the inventory is hedged correctly their bank will work with them.
This is what just about collasped wheat elevators in winter 2008 , wheat futures soared up and elevators were hedged but were at the end of there credit lines and were being forced to either find additional hedge funding or being faced with lifting hedges and having naked positions.....Around here it came to a point were only 1 grain company would write a harvest delivery contract.....
Even the big Cargill boys were in a bind...... |
Elevator Margin
