Its a whole new World!

[farmaholic]

Ok, I'm as curious as the next guy...

In the first week of last July(15), March(16) Minni Wheat was trading at about $6.50 US, the exchange rate was $1.27 at the time. So Canadian its $8.25 less some sort of basis would have netted a pretty darn good price. Now depending on where you're shipping and if your loading producer cars or what ever... there was good potential.

[furrowtickler]

What kinda wheat you taking about - hrsw ?

[farmaholic]

Hey furrow... at least I think it was the equivelant of our HRSW... Isn't it called Dark Northern on the MGEX which is the closest in quality specs as our milling wheat.

Anyone else want to help verify my numbers?
Farming101?...

[farming101]

Hey Farmaholic, your numbers look about right.
A lot of variables to consider. I wouldn't know too much about local markets in S Manitoba.
In theory,I would think if one nailed the high shorting Dec Minn and then locked in basis closer to delivery you could actually have done better than 7.50 CAD net.

The low CAD has really allowed basis to fly high.

[TOM4CWB]

Oct 1 Dec16 futures MGE was $5.95... was considering shorting futures... but better to grow Canola peas fabas flax... so I didn't. Wasn't enough.

$us 5.95x 1.41=$8.30/bu...

buy put on CDN$ instead.