Pricing in Crops Without Underlying Futures

[charliep]

I notice all the discussion on Agriville is about crops with underlying futures contracts - canola and wheat. Big two I but ______. Pulses and feed grains also pricing challenges. Similar with flaxseed. Are you happy with pricing in these crops? The risk management strategies/contracts they offer?

[bucket]

Are you saying we have a choice?

As on a different thread I sign contracts I am happy with 8 months in advance and the graincos take delivery 3 months late.

It's not working.

[farming101]

Regarding Flax, since Triffid all the risk in the world has been downloaded to the farmers. To some extent pricing has reflected that. Marketing tactics have been keep it in the bin till the price is right, on farm stocks are not reported to anyone due to confidentiality.

[freewheat]

Yes. I am relatively content with those crops and more. Canary, feed grains, etc.

I do feel the small acres crops are more often grown as a "gamble crop" for most guys. Left un-priced, I mean, unless there is a real deal going on for new crop, which may happen with peas this coming year.

Depends on the company too of course....

[BTO_farmalll]

Bring Me That SonofaB!tches Head That Said $6.00 Corn Was The New Norm!!!!!!!!!!!!!!!!!

[Braveheart]

Futures exchanges were really designed for grain merchants to manage price risk.

I'm ok with crops without underlying futures contracts. Basis risk is of small concern but usually contract prices for crops without futures have movement to end users planned so basis isn't used to encourage/discourage deliveries.

For such crops what matters is price, on time delivery to contract, and does the companies' cheques cash.