crush margins must be HUGE!

[cottonpicken]

I admit you are completely right about that stuff,just
have a bias towards semi ill informed farm families
that are swimming in a shark tank but are maybe
unaware and ill equipped.

A hedge fund manager in hong kong on a computer
will be drinking their milkshake.

And yes that man will make money when it goes up
and down.

Some day i'll learn to lay up.

[hobbyfrmr]

Cotton, don't lay up there is some truth in your
ramblings.

http://www.urbandictionary.com/define.php?
term=i%20drink%20your%20milkshake

[ado089]

I use options for ok prices and sell
futures for great prices. To me great
prices for canola are $605/mt and up and
for wheat it is $9.50/bu and up. At
this point in time if prices are
sustained much higher than than that
something else is going very wrong. I
also will not sell more than 15bu/ac of
crop, if the price is that good that I
feel compelled to sell more I will do it
with options.

As far as my CSCO issues. First of all I
started with Mar delivery. Issue number
one was in April when I wanted to lock
in my risk free tonnes at $619/mt they
had no basis that far out and they
wanted what at the time seemed like a
hefty price to lock in the futures
first. When I'm committed to delivering
to a certain company I hate locking a
price without a basis. The second issue
was grading. The same samples were taken
to 5 elevators in 3 towns including the
local Cargill, all called it .2-1%
green, CSCO folks called it 4-7.5%.
Lastly once I finally did lock in a
price (~$560) I wound up with $2,400
bill because they would not let me deliver generic against a 700bu shortage
on a 18,000bu contract.

So to summarize at the end of the day I
spend $7/ac more on chem and seed to receive a potential $12/ac premium more
or less to for the sake of being able to
lock in 14 bu/ac risk free which pretty
much was not able to do until July.
Then at the end of the day any premium I
would have received was clawed back
through grade discounts and contract
buyouts. This learning lesson in
marketing brought to me by the fine
folks at CSCO cost me about $25,000 on
480ac.

[hobbyfrmr]

Ado, thank you for sharing. Those are the
marketing details that are necessary to know. In
the past, AVers have summarized that they were
more satisfied with non specialty canolas for the
same reasons you describe. The difference is,
that, you quantified it.
For fair grade comparison, have you sent uniform
bin samples to SGS for grade and dockage
testing? It's not expensive compared to the
$25,000 you are giving up.
Most farmers do not ever pay to use these
services until it is too late. Then again, with prices
as high as they are, the farmers don't need the
extra money so they don't try for it.

[hobbyfrmr]

Ado, thank you for sharing. Those are the
marketing details that are necessary to know. In
the past, AVers have summarized that they were
more satisfied with non specialty canolas for the
same reasons you describe. The difference is,
that, you quantified it.
For fair grade comparison, have you sent uniform
bin samples to SGS for grade and dockage
testing? It's not expensive compared to the
$25,000 you are giving up.
Most farmers do not ever pay to use these
services until it is too late. Then again, with prices
as high as they are, the farmers don't need the
extra money so they don't try for it.