NEWS
Jerry Gulke DTN Columnist
Mon Dec 10, 2012 11:02 AM CST

With two adverse production years in a row -- although for two very different reasons -- the axiom that no two years are alike may have lost its significance this year. Problematic cash contracts are beginning to surface. One particular situation of which I have personal knowledge stresses that the importance knowing the limitations of any flexibility associated with a cash forward contract is paramount. Most large commercial firms are not sympathetic when it comes to letting one buy out of a contract unless any such flexibility is in writing. There are examples where such flexibility is allowed, with qualifications.

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