Originally posted by farming101
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March Canola calls
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I don't see how a guy could lose.
May, July, November and January continuous contracts have not made new record highs.
As noted the March contract has some work to do to get all the contracts offset. I will enjoy seeing how this all plays out...
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It likely will but not to the extent one might think.
May volumes have been lower than many of the past years.
Much of the commercial trade is looking further out than May.
Total volumes might be indicating there is less business to conduct going forward too.
The market will be thinner, and likely more volatile.
As of Feb 9 the spec trade was net long 43967 contracts.
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Question for 101 , others ?
Have a little nexera with June /July basis attached over July
Forgive me , I am really bad at this
Right now July futures about $.75 /bu less than may
If a fellow waits , do you think the inversion will decrease ?
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Originally posted by caseih View PostQuestion for 101 , others ?
Have a little nexera with June /July basis attached over July
Forgive me , I am really bad at this
Right now July futures about $.75 /bu less than may
If a fellow waits , do you think the inversion will decrease ?
You want to picture what a decrease in the value spread between May and July might look like.
Also, realize the spread/inverse could be maintained but price for both could go up or down in lock step.
If it goes down then of course your returns at the time you fix the futures component will be lower.
At the price we have now, as I said above, I don't think a guy can make a bad decision.
Your question indicated that you were hoping July futures may rise to meet May values. I don't know. However, I am thinking we may see maximum volatility in the March with less volatility for May and less again for July. July could still appreciate in value meaning higher returns for your contract but I think the May is more likely going to fade to meet July. There could be fireworks in the July but I think it will be past the deadline to price out.
So, focus on the July not this crazy inverse. Also, new crop will be growing by then. crop conditions might have something to say about price direction by then.
Just my thoughts, I could be wrong, you know best for your farm.
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