Canola rally?

[freewheat]

What am I gonna do with the rally? Sit and watch it pass me by. No seed in ground. A bit frustrating.

[Choice2U]

Freewheat....You have still have options...no pun intended. I bought a July call option in April (paid $8/Mt) because of the drought concerns. Now I'm close to making money because it is too wet (shows how smart I am...NOT). I just bought a Nov call option for $11/Mt (more than I wanted to pay but I'm close to making money as I bought the day after the first rally). If we get a strong rally with more weather scares, I'll benefit fully from the rally regardless of whether my canola gets hailed, frozen or whatever. You got to spend money to produce on ground and on paper. Still no guarantees and I could lose $20/Mt but I thought the risk was worth it because of the volatility. I deal in 60 - 100 Mt lot sizes. You can spend $800 (I could make $10K if canola moves to $500/Mt by June 26) or spend $8,000 on these options depending on your size and ability to handle the risk. As an aside, I got 70% of my canola acres planted.

[freewheat]

I know about options. Can you borrow from a bank to buy 'em? Otherwise I aint got 8 cents a tonne to spare... LOL

[Choice2U]

I would just move $2K from a L of C to your broker account. With little seeding, you won't be spending the $2K on inputs so use it to try and make something. I know its a risk but so is putting seed in the ground. Hopefully, your banker isn't watching your account that close.