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| I'm wondering what it would take to lock in a larger % of my 07 maybe 08 crop at something over $3.50 that wouldn't cost too much. I've already sold fairly aggressively (maybe not depending on how the crop turns out) and I'm a little concerned that by fall 07 we could be in the 2.50 maybe 3.00 range and "languish" there due all the added acres. Is there a buy/sell option strategy that would work in this case?
I realize that there maybe a bunch of new acres that won't be very productive, but it may take a while for that to affect the market. I guess instead of 'how are we going to fill the demand for grains?' talk, I'm hearing more like 'we'll feed more wheat and it will all work out'. Given our history of overproduction, it's hard not to at least consider the 'we'll have enough' scenario.
Thanks,
Pat
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Any ideas on setting a floor with options
