Locking in Winter Wheat 2011??

[furrowtickler]

I am thinking of locking in about 20 bus/ac of winter wheat. Problem is I am not sure what it will look like come spring. If for some reason it does not make it, I am on the hook through the board. Would be nice if one could just transfer the tonnes over to hard red but the cwb does not have that option. We passed up some good pricing in 2008 b/c of this. Is there any way around that risk?

[charliep]

It might be a time to use futures versus a contract - easier/less pain to exit the position if a crop disaster. If your winter wheat looks good and you feel comfortable contracting, you can hand over your futures position to the CWB using an EFP - exhanges of futures for phyisicals. You might also look at options strategies - buy a put to protect the downside/leave yourself open for further gains.

[charliep]

Should get my terminology right. Exchange for physicals. Here is the CWB explanation.

[URL="http://www.cwb.ca/public/en/farmers/producer/1112bpc/pdf/efp.pdf"]EFP[/URL]

[BTOfarmall]

I grow winter wheat er year. I have NEVER sold trew da Bored. I always sell fer feed, grades #1. I wood take a dollar er two a bushel less den sell trew Tom's Chiselin' & Cheatin' Friends!!!!!

[furrowtickler]

Just lookin at options there spanky, relax...

[ColevilleH2S]

Using the words "Winter Wheat" and "CWB" in the same sentence make my blood boil. It is a secondary crop to them, and no effort is made to market it to it's full potential.

I quite growing it last year because I was tired of growing a milling grade product, and selling it for feed prices.