July/Nov 16 Canola spread

[farming101]

Quite obvious when the crop saving rain hit last year.

[farmaholic]

I wish I had balls as big as Tom4G3 and would have priced canola at the peak(hind sight of course). Things weren't looking very good here. Risk management... I even swathed the canola crop on the greener side to try and lay a tighter swath that I could pack because it was a lighter crop. I wanted to try to prevent it from blowing away. We have had swaths scatter before and it really cuts the yield. I didn't feel comfortable prepricing any amount this year. Amazing how a couple of kicks to the nuts can make you (overly)cautious...and not want to take another, like not being able to fill the contract.

[farming101]

Not looking back here. Jut glad we had a decent harvest and
something to sell. Hitting the top of the market was the least of
my worries the first week of July 2015. Positive waves....

[TOM4CWB]

Farma,

Our Young folks involved.. and plenty of loan payments mean this is risk management... not smarts that drives our pricing decisions.

Glad we can fall back on AB SPE prices for 2016... even if this AFSC option isn't cheap.

[errolanderson]

Tom . . . put options alone offer a much higher floor price at a cheaper premium and much greater flexibility than government insurance programs.