Tidbits, May Basis Contracts, Wheat Droughts, IRS 4/22/24

May Basis Contracts

If you have any May basis contracts, the first thing you need to do this morning, if you have not already done so, is contact your merchandiser and find out when you must roll or price out your May basis contracts. By the book regulations, it is before the close of business next Monday, April 29th, which is the last trading day before first notice day of deliveries on May futures contracts.

House rules refer to company rules and policies that are different from the standard book rules.

The second thing you need to decide is are you going to roll to a July basis contract or price the May basis contract. 

If you are going to roll, the timing needs to be when May futures price is as close to the July price as possible.

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