What we don't know is how the big F managed their pool. Did they sell some but used hedging tools to keep a hand in the game & cover an upside in the market? Harvest pools have to sell some in advance or they wouldn't get movement of the physical at short notice on such a large bulk, even in a rising market.
Fengrain have not used future & options in the past, preferring to use the crop information available and experienced instinct to make sales. Which would you think was a better way? Good guesswork or risk diluting the pool price with hedging costs? There's no right answer but it's worth looking deeper than just the final pool price to see who is managing risk the best.
Fengrain have not used future & options in the past, preferring to use the crop information available and experienced instinct to make sales. Which would you think was a better way? Good guesswork or risk diluting the pool price with hedging costs? There's no right answer but it's worth looking deeper than just the final pool price to see who is managing risk the best.