What to do.

[groundspeed]

I can get 12.59 for canola oct first delivery. Should a guy take it or hold on. Lots of bills coming due by then. Canola is in swath looks ok.

[charliep]

Will let others answer.

Your price equates to about $555/tonne or depending when you got the bid, a basis of about $20 to $30/tonne under November futures.

Here is the chart. November futures have spent the last week in the $575 to $585/tonne range. When it breaks out were will it go.

[URL="http://farms.com/FarmsPages/Markets/tabid/214/Default.aspx?page=chart&sym=RSX11"]Nov canola chart[/URL]

Next USDA report will have to be watched. Lots of weather getting built into futures prices. I like the expression "Buy the rumor, sell the fact".

Can you get a sniff at something closer to $13/bu? Others can comment. For cash flow sales, my finger would be itchy on the pricing trigger. Does the grain company you deal with have a reputation for taking canola within their delivery commitment period? Lots of conversations with farmers these days about canola when they are sitting in elevator lineups waiting to unload.

[Prairiefire]

CDN $ up cmpared to USD$ that has an effect on the net price we get. Also ressesion on our doorstep . Group of 8 ,20 must be nervous . Housing market in the states about hit a second go round. We have not heard the last of the deregulated financial twister headed our way.

[hobbyfrmr]

I have never sold Canola for $12.59/bushel.....ever. Maybe you can wait for $9.75 and the same bills coming due.

[Hopperbin]

I managed 30.000 bushels sept delivery a while back for 12.65 There should be some profit there at 12.55, sell some. Could also always wait for it to heat and sell for 5 bucks.

[crusher]

Sold some for $13.50 yesterday, May delivery. The carry works for me, can't get that kind of return on anything else.

[hobbyfrmr]

A person has to do the math. What is the yeild? 20 bu/ac X $12.59= $251.80/acre gross. Canola costs approx $250.00/acre to grow (I am guessing this is full cost of production). Anything over that yeild, at that price, if you sell the canola, is profit.

[jdepape]

Looks like a good carry in the futures market -
likely in the cash as well.
Can you take out a cash advance to pay the bills
and sell for deferred delivery at a better price?