Agriculture News, Markets, Weather, Ag Talk, Farm Machinery | Agriculture.com
Reply
Veteran Advisor
Shaggy98
Posts: 4,150
Registered: ‎06-19-2011
0

Wheat call options

Anyone besides me considering the use of call options to reown 2012 wheat bushels already sold?  I needed the revenue of the bushels a couple months ago to pay for inputs for 2013 wheat on some additional acres added to my operation.  I think I left money on the table, is a call option the way to recoup on sold bushels?

Esteemed Advisor
Hobbyfarmer
Posts: 4,033
Registered: ‎01-10-2012
0

Re: Wheat call options

for your broker

60% of the time, it works every time.

"Political correctness is a doctrine, fostered by a delusional, illogical minority, and promoted by mainstream media, which holds forth the proposition that it is entirely possible to pick up a piece of dung by the clean end."
Veteran Contributor
Kstater85
Posts: 114
Registered: ‎06-28-2012
0

Re: Wheat call options

Why would you want to reown $9.25 wheat?  Put the price in perspective of the range of prices for the last ten years.  $9.25 is in very rare air.

 

I think a more reasoned approach would be to delay pricing any growing 2013 wheat until more is known about crop conditions coming out of dormancy, especially with the insurance price. 

 

FWIW----The fall winter wheat conditions have very little correlation to the final wheat yield. 

Veteran Advisor
Shaggy98
Posts: 4,150
Registered: ‎06-19-2011
0

Re: Wheat call options

Won't even consider pricing 2013 wheat, I know we are a long way from harvest, but if things don't change soon and very soon, there won't be any to price.

Senior Contributor
rightone
Posts: 217
Registered: ‎05-13-2010
0

Re: Wheat call options

I like the cme, sept 013's say $11.90 to $12 costing a dime.

Figure cash wheat to $14 to $16 from now thru 013.

 

Cost affective cattle for every environment here.
Esteemed Advisor
sw363535
Posts: 4,662
Registered: ‎07-18-2011
0

Re: Wheat call options

Thanks Rightone,

 

I will study it more carefully.

sw
Contributor
dallasguy22482
Posts: 10
Registered: ‎05-14-2010
0

Re: Wheat call options

"FWIW----The fall winter wheat conditions have very little correlation to the final wheat yield. "

 

It does if it's dead.

Veteran Contributor
Kstater85
Posts: 114
Registered: ‎06-28-2012
0

Re: Wheat call options

If it is dead then by definition your yield will be zero....... which most certainly will be UNcorrelated to the final yield.

Esteemed Advisor
sw363535
Posts: 4,662
Registered: ‎07-18-2011
0

Re: Wheat call options

Kstater85 is that another place where the abandoned acres don't make the harvest calculations?

sw
Veteran Advisor
Shaggy98
Posts: 4,150
Registered: ‎06-19-2011
0

Re: Wheat call options

I'm confused, why would a yield of 0 not correlate to the final yield?