Will low oil have a Christmas then January file for bankruptcy!

[WiltonRanch]

What does commission run? I'm just wondering how much the price has to turn down before an option would be worthwhile. Probably it's better to buy a contract but I fear margin calls and the ability to cover. As well, basis risk is hard to manage unless you get a deal but is nov a typically higher basis time usually? If a guy is well heeled I imagine he could carry to July and have more opportunities to get a better basis. However I'm not in the position for that and I hate sitting on canola that long. Generally I like to sell off combine and avoid the risk of spoilage but I would like to take advantage of attractive prices for next fall at this time without the risk.

[farming101]

Hey Wilton, kinda wishing someone else would add.
Nov 16 is a long way off. You are buying a lot of time. There is a premium attached to that. However it is a way to negate risk, which is what you are after. Many strategies involve selling a way out of the money option to lower costs
Talk with your broker regarding comissions. If no broker a warning. The paperwork is a pain for approval.
If you are not against committing your bushels to one grain company, check into their marketing plans. There may be one that you could live with.