- Location
- Darlington
I would think if you sell forward your location premium would be taken into account, as the merchant will also sell it into that local market and have to compete with other merchants for your grain.Sell wheat forward and it's futures price (world price), sell spot and it's futures +/- premium/discount, depending on how keen local users are wanting local produce.
Selling forward/locking in contract prices are supposed to be ways of reducing risk for your business. Wheat in this area almost always trades as a premium to futures, £8-£10 is not uncommon, so does selling forward increase or reduce risk?