canola seed and basis contracts

[rbrunel]

Has anyone else noticed the increased interest in linking canola seed purchases with basis contracts? Kinda disturbing....I have refused there offer and took my chance to market new crop where ever I want, is this a good strategy?

[crusher]

If your grain buyer of choice is offering you a good basis when you buy seed from them (at market price), why not give them the business. If it's someone you don't normally deal with, see if your regular buyer will match the offer.

[rainman]

rbrunel, I agree it seems like all the line companies are setting up these special IP programs with a basis contact invoved. I to turned down an offer for a $15 basis for Jan of 08. I don't know what is going on, but something doesn't seem right. I believe basis will be very narrow in upcoming years as buyers will be seeking it aggressively, just my opinion.