New Crop Canola Needle Top?

[charliep]

I'll add basis into the discussion. Someone told there are companies offering overs (premium to futures) for new crop. New crop basis contracts versus historical levels? Sell futures on the current rally (you pick your timing) and buy calls on dips.

[errolanderson]

Charlie - Nov basis heard between $10
under to $10 over for early fall
delivery. That's remarkable for harvest
movement.

Strong Futures Strong Basis = Sell the
cash signal.

To me, growers may want to sign DDC
contracts (10 to 30%) of expected
production and then consider scaling in
puts and hope they expire worthless. But
if they don't expire, you will be glad
to own the protection.

Errol