Canola Marketing

[Hopperbin]

Farmaholic there has been a lot of money made and lost with basis contracts lately. Had my jan month priced out at 10.45 just lately so will be happy with that delivery. I dont understand the shit basis lately. It sbould not be minus.

[Hopperbin]

Other than that I well did miss other pricing opportunities. I will live the rest of my life selling physical yet speculators help the futures work. So I will sit back now and just listen.

[ado089]

Putting a gpo in is telling the market your asking price. That's how markets work ask and bid. If you're putting in a gpo it suggests you're alright taking that price. I have one in for $12 right now for every bushel in the bins. I know it's not likely to hit but it's telling them what I want to get paid.

[charliep]

Perhaps the most important Grain Pricing Order that farm managers have themselves. That is a personal note either in your mind or written down or preferably shared with a partner that will hold you accountable. Something called marketing discipline.

I note caseih has made a decision. At this point, hard to know whether right or wrong in terms of getting a best price. I won't comment for him but for me, I could live with it - made on the best information of the day and a fit with their overall business needs.

I note the original theme was are there market signals that are telling you the market is starting to peak. What is the market telling you about when to deliver - this month, three months, summer.

Perhaps a last comment is the grain elevator is not your customer. They are simply part of a supply chain that gets your product to a customer. If you don't like the margin they are taking or the service they provide, you have to seek out something different or get more involved in the supply chain. I will note that people who have direct marketed or taken on roles in the supply chain to get closer to their customer have a different attitude/approach than someone is simply deals with a local elevator.

[charliep]

Is $10/bu canola all that bad a price? If you were an advisor working to develop a business/financial plan for a young farmer, what canola price would you use in their budgets/cash flow analysis for the loan? Not asking about the politics of canola but the mechanics of making a decision.

[charliep]

sorry should be baseman. You are likely more aggressive than I would have been but I would comment a good decision. We'll find out for real starting tomorrow. Nice to have stuff sold and down the road money in the bank. Likely a weirdo but bills paid/money in the bank relaxes me and does a lot to look after the shoulda/coulda/woulda of marketing decisions.

[charliep]

rotten auto spell. caseman.