Market Check - Putting options on the table

Putting options on the table

Tom Basnett of Market Check discusses the advantages of using options to manage risk.

While many growers have had a great start to the season and are keen to protect new crop prices, the first important point is to avoid the risky temptation to over- commit grain to forward contracts. Crops may not yield as expected, resulting in washout costs. If a tough spring transpires, cash prices could lift by $100 a tonne overnight.
While it is too risky to commit physical grain at this point in time, there are low-risk alternatives to forward contracting – giving a floor in price with free upside if a tough season transpires or offshore markets rise again.

Click on the attachment below for the full story

Putting Options on the Table Farming Ahead

Keep up to date

And lastly, lets look at where it came from. WA market share fell, with SA/EC picking up the slack. Barley exports from here on in will be pretty scarce as stocks tighten + inverse to new crop

Yesterday from Market Check's Twitter via Twitter Web App

Follow us