Hedging Canola

[rbgordon]

Anyone having success hedging canola, futures or options. In Sask. what companies are the most experienced and understand hedging the best?

[macdon02]

I use Scotia McLeod in Winnipeg, RJO or RBC. Can't go wrong with any of them. Don't have to worry about an MF Global experience here as everyone covered by CIPF I believe. Your choice gets limited if you don't want full service, RJO offers it though, Not sure who else does. Know there's a couple but can't recall right now. I like Scotia, they charge enough but I find value in them, enough to not go electronic. It is reassuring having someone else watching as you first get into it. Ease into it don't swing for fence, use stops somewhere depending on risk tolerance. Oh and admit your wrong quickly, the losses are easier to accept. Lol. Can be right and if timing is wrong your still wrong. Oilseeds can be real rollercoaster to trade, especially beans. If you don't get blown out after three years chances are your addicted or gonna do alright.

[btjadenlepp]

In my experience the brokers are all pretty good. Different firms can have very different approaches though, so figuring out first what your style is (goals, pain tolerance, frequency of trading) helps make a good match.

I'd also recommend interviewing 3-4, and choosing the one you communicate best with. Also take a look at each company's account statement, make sure it's easy to read, and think about how you will reconcile your paper/cash positions on an ongoing basis.

If you're looking for another layer of dialogue to support your hedging activities, check out:
https://www.farmlinksolutions.ca/services/hedgelink.

This program provides education, strategies and support to farmers interested in hedging with futures and options. We are not futures brokers.