just wondering what our moderators and others think about what to do with unsold canola. the way i see it there are three options 1. sell it and take your hit 2. hold it till prices do improve which could be a while or 3. sell it and buy either a call option on canola or on soybeans or soyoil.
Announcement
Collapse
No announcement yet.
canola marketing strategies
Collapse
Logging in...
Welcome to Agriville! You need to login to post messages in the Agriville chat forums. Please login below.
X
-
I guess it's dependent on your situation. Currently the grain handling systme is being flooded with large amounts of canola for this time of year due to bin space problems and moisture/spoilage concerns. If this isn't a problem I would reccomend holding out. Additionally, going into the new year certain producers may have cash flow problems which may necessitate sales. In the long run if you don't have to sell then it's best not to sell at the bottom of the market.
-
Have heard of some fairly decent basis levels to attract deliveries. With the previous highlight on financial/storage needs as a drivers, I wouldn't be afraid to sell some in here at current prices (holding your nose when you do it). Oilseeds are going to struggle to move given the large canola crop at here and both the large US/potential South America soybean. Would be patient on any replacement strategy until the market has signaled it wants to go higher.
Had a conversation with someone who signed a deferred pricing contract without negotiating basis - a painful experience. Understand the contracts you are signing and the costs/benefits/risks. Hopefully people are comfortable enough in this site to ask the questions.
I apologize for my analogy but marketing should be like hockey - a product of skill and finesse that results in goals/profits. The fights on the ice/around policy are interesting but may not contribute to a better outcome.
Comment
-
- Reply to this Thread
- Return to Topic List
Comment