Comment Text:
I am a grain producer in central Missouri and I find the hardest part of farming comes from the price volatility and lack of convergence. It has been a large concern, especially oil seeds in the last few years. It's important to my price risk management program to have futures prices and cash prices come together (converge).
One of my risk management tools is crop insurance, which is based off of futures price, not my cash price in Brunswick, Missouri which can have huge financial implications especially in years where an abnormally wide basis at the country elevator occurs. I would like to see CME utilize a hybrid variable storage rate that could be reviewed annually rather than every three or five years to more accurately reflect the market for the farmers.
Thank you for your time to help improve our markets efficiency.
Randy Meyer, Inc.
Brunswick, MO 65236
