Join Date: Nov 2009
Location: Central Alberta
Mentioned: 0 Post(s)
Quoted: 111 Post(s)
I also am in a high risk area and depending on the year I will presell at least 50% of my expected gains, if the price is high enough. On some of my HR wheat last year I pre-sold almost 90% of projected yield but I figured I couldn't lose as the price was $8.50 (I missed the $9.00/bu contract by a couple days). That has paid off very well. If the price isn't great I might only presell 20-30% or none.
I am all sold out of canola now. I sold the majority at 11.50 and then the rest at 11.75. I thought about waiting for 12 but then my brain and years of bad experience told me, "how many times in your life have you sold canola for 11.50 or over and how often have you sold canola for under 10". It was kind of like when canola went to over$16 a few years ago, I pre-sold some but I heard of fellows waiting for 18...????
Malt barley, still waiting for delivery....go figure.
I look at marketing this way....farming is really one of the riskiest business's you can be in so I may as well have some marketing risk involved as well....as other have said, everybody's situation is different and depending on your cash flow etc...that will dictate how much risk a person takes.