Lewis Hart

So you sort of look at this intersection of commodity trade finance, family business, and in the middle of those two overlapping circles is the peanut tree nut industry.

Got it.

Usually you wouldn't take delivery if you didn't intend to.

So usually it means something went wrong.

There are certain products where you actually buy the commodity physically with a contract to sell it back in the future.

It's a form of inventory financing called a repurchase agreement.

But typically, your goal is to manage the credit so it's a good company that doesn't default on the loan, and therefore you avoid having to get out of the loan the second way, which is liquidating the collateral.

So you try to avoid that at all costs.

If you had to, the good news is you can typically sell it in the location where it exists.

So if it's in...

a tank in Houston and it's X barrels of oil, you kind of say to someone else, hey, can I sell you this?

It's sitting here and they'll quote you a price.

So it's not as dramatic as actually arriving at our doorstep.

And we try to avoid having to do that.

That's part of our job.

Something has gone wrong if we're doing that, but it has happened before over our 206 year history.

Yeah.

So if you look at the origin of the futures market, it was really designed to help farmers manage their price risk.

So think of a grain farmer in Iowa.

Yeah.