Does TMA make more money when the market goes up $3.00 per bushel?
No, when the futures market increases, our interest cost to fund the margin calls also increases. TMA’s profits are arrived by market intelligence, basis, and utilization of grain storage space. TMA is a true grain hedging company that uses the futures market to manage and offset the risk of purchasing grain. When producer’s sell their grain to TMA, we automatically offset the risk of owning the grain by selling it on the futures market. TMA’s profit is the same if we buy the grain at $3.00 per bushel or $10.00 per bushel. We are basis traders.
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