Downside to Delayed Price contracts – Voice Of Muscatine

Downside to Delayed Price contracts

The director of brokerage for CHS Hedging cautions farmers considering Delayed Price contracts.

Delayed or deferred pricing allows farmers to deliver grain now and price later to free up storage space while waiting for markets to improve.

Sean O’Toole says interest rates are a major factor in grain marketing right now.

“It used to be that just selling deferred price and just waiting for the Board to come to you was a strategy, (in fact) it is still a strategy (but) an expensive strategy because DP rates are high.

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