Locked in any prices?
-
Share on Facebook
-
Share on Bluesky
-
Share on X
- Copy Link
for paNOW
A southern Alberta company called DynAgra has launched a farm risk management and crop marketing service called Know-Risk Farm Management. Remi Schmalz of DynAgra has some interesting observations on the hesitancy of producers to forward sell the 2011 crop.
Many, perhaps most producers haven’t sold any new crop even though good prices and some of the biggest margins ever have been available. Canola prices have tumbled in recent days dropping $40 or $50 a tonne from the peak. That’s a reminder that markets don’t go up for forever and despite all the optimism, no one knows what prices will look like after harvest.
Of course, a lot of us are hesitant to lock in canola, because of the production risk. Schmalz is one of the few advisors that I’ve heard talk about canola options. They cost money up front, but there are no surprises and you can participate if the market moves higher.
