Market Factors/Strategies

[charliep]

Would encourage Albertans to have a look at the Cattle Price Insurance Program that AFSC will be offering this summer. This process/risk management product may have application for crops. The problem with SPE is the time between when coverage prices are set, premiums are established are calculated and farmers make a purchase decision about SPE. New product would have daily calculated premiums based on actual market values.

[Choice2U]

I should have bought a Nov Canola put about 3 - 4 weeks ago. This would have put money into my 09/10 crop account. I had a March put that expired about 2 weeks to soon so never made any money there. The Sept/Oct basis has narrowed by $10/mt ($43 - $33 in my area) so am watching it now as an alternative to my first missed opportunity (I was going to say mistake but chose another word). If this canola drop continues, we might see a $23 basis for fall deliver which I will lock in 20% of crop and hope for a futures rally in the next number of months. If canola shoots up, I will not miss another opportunity to buy a canola put that locks in a profit for another 30% of my crop. If the market stays down, I'll just sell my wheat to cover my cash flow needs....oh, wait....I can't. Seems that there are no good bids out there for anything else so contracting 09/10 is not a great idea...at least right now. Correct me if I'm wrong, burbert as you're always so enlightning on this stuff?