Fall contracts

[wakopa]

Early this winter the pessimists , I mean experts said canola could go down to 7or 8 dollars so I locked in at ten,lol my canola went 45 last year and it looks good this year so if I lock in some at ten and the rest goes higher , I guess that is good , I think .

[cottonpicken]

Sure would be nice if we had a canadian western brocker(cwb) to mitigate the challenges between the buyer and the seller

[Rareearth]

There are many ways to analyze the numbers, opportunities, risks:

- if a put or a call is $20 and futures are at $475 ton = 4.2% premium for risk or price insurance with no act of God or delivery obligations

- depends where you are basic hail insurance about 3.5 % in my area ( then apply the multiplier for various higher risk crops canola 1.35x. Lentils 1.6 x)

-Crop insurance canola is about $7.50 acre for $230 acre = 3.3 %

Every one jump in with other numbers. Question is where is ones insurance dollars best spent?

There are revenue, margin, companies doing this as well, not sure what the premium cost is. What or where or who offer the best risk premium value?

[GOODRUM]

Experts say lock in a profit, everyone else charges what the market will bear, we will never know what the market will bear by carrying all the risk and guaranteeing a contracted amount at a set price.
Graincos like contracts, they are the ones offering them, with our interests in mind. Yea right.

[newguy]

Sask farmer.Did you contract your peas? A couple times you posted good profit in peas if you took a early contract.

[farmaholic]

Wakopa. Your description is like letting the experts, analysts and companies that buy your grain(all who have no skin in "your game") count YOUR chickens before they hatch. Its bad enough we do it ourselves. "Fortune" tellers......

[farmaholic]

Goodrum, if the contracted prices work for them, go for it. Not saying no one should forward contract. I did flax with an AOG. But I do agree wirh your sentiments.

Low hanging fruit gets picked first and sometimes at the best price if there is an abundance. Sometimes the low hanging fruit, when in a shortage, is the cheapest and easiest to pick because the bearer has "obligations". Both low hanging fruit in different scenarios with different results.

Contracting company called today to check up on how "our" flax is looking. Lol. Should have told them to pay for some of the inputs for "our" flax.

[farmaholic]

There are many ways to analyze the numbers, opportunities, risks:

- if a put or a call is $20 and futures are at $475 ton = 4.2% premium for risk or price insurance with no act of God or delivery obligations

- depends where you are basic hail insurance about 3.5 % in my area ( then apply the multiplier for various higher risk crops canola 1.35x. Lentils 1.6 x)

-Crop insurance canola is about $7.50 acre for $230 acre = 3.3 %

Every one jump in with other numbers. Question is where is ones insurance dollars best spent?

There are revenue, margin, companies doing this as well, not sure what the premium cost is. What or where or who offer the best risk premium value?

[tipsy]

It's hard for me to believe that at this time of the growing season,(apprx 30 days into growing season) conditions are so bad a grower forward pricing canola knows he can not grow 5-10-15-20 bushels an acre of his contracted production. But only see my area!