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Basis or Pool?

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  • Fransisco
    Senior Member
    • Feb 2007
    • 3859
    #11
    Wouldn't rolling it increase your basis?

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      • Choice2U
        Senior Member
        • May 2008
        • 476
        #12
        Not if the market is inverted. This was the case last winter. I rolled it from Mar to May to July and made some $ (about $8/mt) that reduced my CWB basis. The MGE futures price was lower than the current month which made it work. If the market has a normal carry (ie. every futures month out is higher reflecting the time value of money or whatever) then my idea to rolling and waiting has no merit.

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          • Choice2U
            Senior Member
            • May 2008
            • 476
            #13
            Whoops...this should read "months further out on the MGE were lower than the current month which made it work."

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