Wheat call options

[Shaggy98]

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?

[Hobbyfarmer]

for your broker

[Kstater85]

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. 

[Shaggy98]

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.

[rightone]

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.

[sw363535]

Thanks Rightone,

I will study it more carefully.

[dallasguy22482]

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

It does if it's dead.

[Kstater85]

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

[sw363535]

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

[Shaggy98]

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