Soybeans up again

[errolanderson]

This is a money-flow rally and an excellent hedging opportunity for growers.

Nov canola $520 put options traded for $20/MT on June 02. This offers an $11.34/bu floor minus your fall delivered basis without production or delivery obligation.

[bucket]

Minus a September basis of 50 per tonne and it's a 10.25 price.

Delivery or no delivery it's 30 bpa minimum to break even. At the farm.

[bucket]

Minus a September basis of 50 per tonne and it's a 10.25 price.

Delivery or no delivery it's 30 bpa minimum to break even. At the farm.

[errolanderson]

bucket . . . $50 under is a nasty basis.
would negotiate that one . . .

or look at Jan puts to await a better post harvest basis.

this is pure price insurance without obligation.
expired put options would be best case scenario

[bucket]

Of course it's ****ing retarded buy I can get a better basis then spend it on fuel and tires.

[Rareearth]

$ 520 futures
$ 20 put cost
= 3.85 %. (20/520x100)

Seems like a reasonable % cost (risk) compared to other types of insurance, with out adjusters, assessments, etc, you are in full control to adjust the position ( speculation or hedge)