Near-north Ontario, French River | All valid points and all the more reason for the grain purchasers to have and follow very strict risk management policies. Years ago, like 10 yrs prior to me being on our local Board the co-op didnt have sound risk management policies. For whatever reason hedged were lifted and almost the next day the rain stopped... markets rallied and it almost took the co-op down. Luckily they survived and learned some very valuable lessons , by the time I was elected some very strict risk management policies were in place. Live and learn. The really large co-ops will typically have access to funds from a conglomerate of banks, even banks need to spread their risks out. Been years since I've been on the Board but it wouldn't surprise me if , with the current run up in markets, that the lines of credit to maintain hedges are running in the 100's of millions of dollars |
Wheat price, elevator margin calls, world wheat uncertainty
