Alberta - Crop Insurance Coverage Prices for 2013

[charliep]

Will note that Alberta has posted the 2013 prices to be used in crop in crop insurance coverage and spring price endorsement (SPE). Still just under 2 months for a decision but I suspect the coverage prices will make it worthwhile to look at SPE coverage. An individual decision but Alberta farmers will need to warm up a calculator to make a decision.

[URL="http://www.afsc.ca/doc.aspx?id=6372"]AFSC CI Price[/URL]

[errolanderson]

comparison purchasing put options
(approx value)for fall price protection
at current canola option values.

Nov $500 put @$4.50 = $495.50/MT
($11.23/bu) plus or minus delivered
basis

Nov $520 put @$7.50/MT = $512.50/MT
($11.62/bu) plus or minus delivered
basis

Nov $530 put @ $10/MT = $520/MT
($11.79/bu) plus or minus delivered
basis.

Nov $550 put @ $17/MT = $540/MT
($12.24/bu) plus or minus delivered
basis.

Most popular ( most open interest is the
$520 put followed by the $530 puts.

Hope i have my math right . . . .

[errolanderson]

oh boy . . . messed up on the $550 puts . . . try again.

Nov $550 put - $17/MT premium = $533/MT ($12.09/bu) plus or minus your fall delivered basis.

[Digger]

Charlie - any idea on how AFSC will calculating the Fall Market Price this year?

[charliep]

Not 100 % sure. There are some challenges on wheat and barley. Likely will be using selected cash prices from a given area versus futures. ICE Canada barley/wheat/durum has limited volumes. Not enough history to understand basis Canada and US wheat futures markets.

Canola and other likely to be similar to previous years.