Canola now what

[Oliver88]

Farmaholic, put option protection generally offers slightly lower return than fall DDC cash contracts, but there is no production/delivery obligation. No margin call risk. We suggest growers start with DDC contracts up to their comfort level and beyond that start scaling in put options.

My favorite strategy is to scale-in put options into a raging bull weather market, should it occur. No one knows where the top is. All we know is there is a peak and then sudden drop. There is a risk to signing a DDC contract as your own production may be threatened.

Realize this is now water-under-the-bridge, but this put option strategy was a very effective strategy during the 2017 run-up in Minneapolis spring wheat. Some growers cashed in-significant gains and protected profits with just lonely put options.

Errol, going back to June/Early July 2017 do you recall the details of the put options used on Minneapolis wheat?

Was it a Minneapolis or Chicago options?
What month?
Price per bushel?

[errolanderson]

Errol, going back to June/Early July 2017 do you recall the details of the put options used on Minneapolis wheat?

Was it a Minneapolis or Chicago options?
What month?
Price per bushel?

Oliver, in our shop we used Minneapolis puts. Not in office right now, but can check tickets for month and strikes next week.

[Oliver88]

Oliver, in our shop we used Minneapolis puts. Not in office right now, but can check tickets for month and strikes next week.

That sounds good, would be nice to see how a person can capitalize more if this scenario repeats itself. 👍🏻