Tidbits, Rolling HTA & Basis Contracts, Acreage and Stocks 6/27/26
- Wright team
- 54 minutes ago
- 4 min read
Rolling HTA Contracts
A client came up short on bushels to fill a July HTA contract for June delivery. The merchandiser suggested the client roll the portion of the undelivered bushels from July to November and deliver the bushels this fall. Our client agreed. He was surprised to learn his new November HTA price was higher than his July HTA. He asked how that could happen?
The gain or loss on the roll from July to November has nothing to do with the price of the July HTA, which could be $9.05 or $17.84.
The gain or loss is strictly a function of the difference in price between July soybean futures and November soybean futures at the moment the roll is completed. What steps does the merchandiser take to roll a July HTA to November HTA?
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