Canola Marketing

[ado089]

Farmaholic, last year I shit the bed and averaged just over $9 at the bin. The year before I was probably pretty average. Sold near the top the two previous. I have an aversion to locking anything in that's not already in the bin so I've missed a few opportunities. I'm still learning the details of trading options. As I go I've started to make some rules to follow to minimize the hurt. This winter I'm trying to make $3-4K a month speculating as a source of off farm income. I've got a way to go but it's coming together and it keeps my mind sharp over the winter. I've developed a new fondness for short dated (<2 weeks before expiry) covered calls, especially if you can pick up the futures position a few dollar under the strike, it's quick low risk money.

[Hopperbin]

No more jan delivery anywhere.

[crusher]

Ado,

What are the commissions like on your short term trades? Don't they gobble up most of the premium? Who do you use?

[caseman]

Charlie, I got nervous and sold the 800 tonne of canola today at 10.05. march delivery.
if price dips next week maybe I will buy it all back on paper.

anyone know a good broker??

[ado089]

Crusher, depending on how many contracts I'm dealing with commissions are right around $1-1.20/mt by the time I'm in and out. I should probably find something cheaper but they've been good at teaching me as we go.

[Braveheart]

Caseman, I'd be more nervous about buying back 800 tonnes on paper. Now, of course I don't know your yields or economics, but I think you did ok at $10.03. I know what you're trying to do but it would suck to give money back.

[farmaholic]

Braveheart, don't discourage him from gambling at the "Futures & Options Casino" ;-)

[MBgrower]

Good luck trying to out guess the market. Should use it to protect upside or downside only in my opinion.

[iceman]

Ado089 is figuring out his AOA (angle of attack) and the ground crew is chirping him about it. Hilarious!!!!

Just keep hitting those Richardson and etc Canola Specials you jokers!

Over & Out

[farmaholic]

Iceman.
In my opinion you've lost control as soon as you-
Sign a basis first or futures first contract-you're committed to one company and they know the grain is coming up the drive way.

OR you sell the physical and think you're going to participate in an active market. That much less the buyers need to come to the market for. What would happen if everyone did it. Would there be a need for
a futures market?

Grain pricing orders- how many tonnes at what price? And there YOU sit at the table waiting for them to come and accept your offer. Someone called it a "free" call option.

If we only sold on the spot market WITH NO
STRINGS ATTACHED, maybe the market would be more functional. But with all the sales gimmicks put in front of us and used by us, but IMO in their favor, I say they really don't have to use the market.

The most power you will ever have is if the physical is in your possession.

In the words of the late Herbert (Alfred) Bryan; " I may be wrong but".....

Would like to hear what that old codger would have to say these days, a controversial fellow he was.

Did you know him bucket?