Fall contracts

[tweety]

Is there a like anywhere i can click!

Why won't it ****ing RRRAAAAAIIIIIINNNNN!

Hate to see those plants suffer.

[BreadWinner]

These are "production contracts" and as long as the crop isn't written off by crop insurance or hail you can't buy it out. . If you don't have enough on time of delivery they you pay up.... if you don't think you can cover your contract you bet buy a call option to protect against the market going up. Viterra will just bill your input account and its your problem. Some companies are good to deal with and some are non negotiable. I have learnt to grow the crop then sell it....not the other way around.

I contracted $1.50 oats once and it froze, the market went to $3.00. I only grew half of my contract and all the oats produced were used to buy out the other half of the contract. Real expensive education in grain marketing.

[farmaholic]

Which plants tweety, the crushing plants?

[errolanderson]

The advantage of put options . . . .

No production and/or delivery obligation

[Braveheart]

We use fall cash contracts. The price protection is always good. Cash always is needed. Also, contracts allow us access to the elevator system when, hopefully, we don't have enough storage.

[Guest]

don't sign these one sided jokes , let this be a lesson

[tweety]

That's hilarious farmaholic.

Is there any condition where a put must be exercised?

[iceman]

Oh us farmers will never learn. If you sign it! You better as all hell deliver against it. If delivery is questionable use puts instead

Out

[sumdumguy]

SF3 your post at 3:44 is dead on. Why pre-sell when the prices are low?

[farmaholic]

I thought options expired worthless if they weren't exercised. If there is a scenario that they must be used after purchase, I couldn't answer. I don't use them and barely have any knowledge how to use them.

[poorboy]

What option is there to price crops that don't trade on a futures exchange?

Such as peas, lentils, mustard, faba beans, etc.

[bucket]

I think if you can get out of those contracts for a small fee it would be wise to do so.

If you go to deliver and your short it's going to be more expensive later.

The canola crop isn't getting bigger each passing day it's getting smaller.

The most a rain will do now is maintain yield not increase it.

I will stick with a sub 12 mmt canola crop this year.

[BreadWinner]

I would think specialty crops would be allot riskier to sign dd contracts because they can be highly volatile and there is no futures market to set the price. it would defiantly be a no go if they did not have a AOG clause.

[tweety]

sumdum, because prices could get much lower.

[GOODRUM]

Earlier this spring a few were all horned up about measly $10.50 canola, they told me it was strategic marketing and what is my marketing plan? Just take what there offering at harvest time?
! U helped hold the price down by signing at a break even price on a average crop, how is $10.50 looking now?