11-27-2012 11:24 AM
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?
11-27-2012 11:43 AM
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.