Canola Marketing Idol

[farmers_son]

Just curious...What would I have done differently if I had more information?

Seems to me I had all the information I needed to make the decision.

[charliep]

GPO hit. - Sold 20 tonnes @ $299/tonne or a sale return of $5,980 on July 13. Going to leave the last 30 tonnes unpriced the moment (pulling the other GPO).

Results

June 20 - Sold 30 tonnes for $9654

July 6 - Sold 20 tonnes for $5,980

July 13 - Sold 20 tonnes for $5,980

Total sales - $21,614 or an average price of $308.77/tonne.

Farmers_son - I agree with what you are saying. What is interesting to me is looking at how people approach a marketing decision like this and learning from them. This is the most interesting part of Lee in particular and me sometimes in the work with marketing clubs and marketing courses.

[TOM4CWB]

Charlie,

RISK.

Is pricing canola going to put my farm at a larger financial risk... than going unpriced if production doesn't come through.

Simply amazing... east central AB, frost the 25th of July 2005 was the farmers complaint... in the JD store when I weas picking up swather parts today.

Provost got quite a bit, from rumors I heard.

Now... what is the production risk... with a possible US iffy bean harvest... smoked canola by either being burnt up (34deg.C yest.) or frosted?

Who bought calls to cover the risk? At what cost? Our 320 calls cost $6.80/t.

Now the cost of the hedge goes up.

So does the guy who does nothing do better or worse?

No doubt a plan will give a more consistant income level.... smooth out the humps and bumps... (Bad for CASIP?)

but what is the 10 year average pre-hedger gain over a cash seller?