I've never done this before but with futures rising in last couple days, might make some sense to lock in some. With acres of canola and beans expected to rise, prices could be considerably lower come next fall. Today looking at around $10.70 Nov, which is a very nice starting price. What's others thinking?
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November $500 puts trading for $18/MT today.
Nov strike price $500 - premium $18/MT = $482/MT ($10.93/bu) less fall delivered basis.
No production or delivery obligation . . . . -
Agreed, or put spreads. Just dont let your basis ride forever.Comment
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That sounds like a good option to watch Errol.
BP could you show an example of a feasible put spread for canola?Comment
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I would love to. But too dumb and lazy. My broker does for me. Worked very well in wheat last year. Have to keep an eye on the spread price. Might post my latest spread info tonight if time. Done 2 wks ago. Price lower but cost of insurance $11.
Erroll?Comment
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locked some canola sept delivery 11.07Comment
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Canola to Yorkton at RP $11.19 for Dec..Comment
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For new crop, I'd recommend doing some sales that lock in a generous profit. You can start using put options after your percentage of crop sold starts making you nervous. Otherwise the option premiums will cut into your profits. Each to his own. Just do something. Not very often canola is over $500 off the combine.Comment
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Everyone's situation is different. These prices might be good for a start for some, but not enough for others. Personally, I'd like the seasonality of weather scares later on in May to kick in. Demand will remain strong so no concerns on that side.Comment
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done some dec for $11 , saw sept today for $10.87, nexera today with AOG WAS $12.49 on first 10bpaComment
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