Market Check - Call options: a smarter alternative to storing grain

Call options: a smarter alternative to storing grain

Control over pricing of grain has been an issue grain growers have grappled with since deregulation. Many have tried to gain some level of control by holding grain and deciding post-harvest when to sell and who to sell to. But holding and storing grain can be costly, risky and also not the only way to exercise greater control over pricing over time. A similar opportunity to participate in a rising market can be created through the use of financial derivative products, such as call options. How and why would a grower choose to use call options?

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What a difference this past month of rainfall has made vs where we were 12 months ago! Lots of areas not out of the woods/crops not even in the ground yet but broadly speaking the picture has vastly improved so far in 2020 #Plant20 #wheat #OATT #Flood2020 pic.twitter.com/L5VT1xNi9p

About 5 days ago from Market Check's Twitter via Twitter Web App

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