HTAs can be a marketing tool with the benefits of hedging but not the threat of a margin call. But many think first of the hedge-to-arrive fiascoes in the mid-1990s. They are among a range of forward contracts offered by grain elevators, ethanol plants and other grain buyers, says Melvin Brees, University of Missouri Food and Agricultural Policy Research Institute (FAPRI) economist. They provide you a guaranteed futures price and the freedom to set the basis at any time before delivery. In return, grow ers are obligated to deliver the contracted bushels.
展开▼
