My Conversation with John De Pape

[agstar77]

Your bottom line is derived from the futures market whether you trade them directly or not.

True but do we all have to play the game?

[shtferbrains]

Still your choice at this time.

[blackpowder]

We are paying to play the "game" when we sell grain either way. The people buying our grain are using those tools.
Having said that. No, no gun to your head. As I've mentioned before.
I don't do all the extra stuff. I don't have the discipline, the desire, or full comprehension. I accept some years I leave $25/t on the table. One year it was $125. (I did get in on that one by accident not brains)
Cargill will do it for you but very pricey and without above-mentioned skill set you just pay for nothing.
My account never has an excess of funds as I'm spending money on insurance in my mind.
They teach this stuff every day in University and every company has people paid to do this every day for their book.
Derivatives on equity market products an industry of its own.
Different cat tho.
However, have you ever received income selling covered calls?
With training and discipline you can make a living.
John's program is not expensive at all and if you're more ambitious than I am, you'll learn a lot and won't "gamble" a dime.
Never speculate.
Just hedge.
Only your production.
Then it's not "gambling" or even a game at all.

[wrongway]

Grow it, bin it, sell it.
Hedge every bushel ever year 1 to 2 years ahead.
there is a big range between the 2

choose what works for you and stick with it.
Don't fight last years battles, don't chase phantoms.
let your winners run, cut your losses.
pretty easy stuff...lol

Its easier to save a buck than make a buck, low costs give you low breakevens and easier profits.

[farmaholic]

Andy Sirski used to write about selling covered calls in Grainews.
Although I think he played with stocks, maybe grain too?

[AlbertaFarmer5]

True but do we all have to play the game?

No, you don't have to be a successful entrepreneurial business owner in 2025.

If your skill set, intelligence, risk tolerance and abilities aren't adequate, you too can be a tractor pilot employed by someone who does possess all of the above qualities. Or a Walmart greeter.

[jdepape]

True but do we all have to play the game?

You don't have to "play the game", but as a producer you benefit from it.

It's a fact that the presence of an active futures market lowers the cost to the consumer (end user) and raises the price to the producer through the reduction of risk.