2006 Diesel

[TOM4CWB]

dfarms11;

Risk Strategy:

Buy a June or July 06 NYMEX Put @ $60 strike... First week of May is historically the low in the fuel market... look at taking delivery of fuel and cashing in Put if well in the money (below $60/b).

[crusher]

Tom,

Thanks for the effort on explaining the program, I think I understand. Ended up buying about 25% of my needs, but might add more tomorrow.

Question - when do you sleep?

[agstar77]

If you are a stock investor buy oil and gas trusts and the major oil companies. This will painlessly hedge your diesel price and might even let you farm on the side.

[dfarms11]

hey, well I talked to my UFA outlet again, and he guarenteed me what he says is right! The only loss to me total would be 3 cents /L. So I went with what he said.

[TOM4CWB]

dfarms11;

Does your UFA contract not have part 6. Account Reconciliation: A, B, and C... of which C states the ..."3 cents per litre for any shortfall in volume."?