With Western Canada’s massive spring wheat, durum and barley contracts moving into the open market this year, thousands of farmers might consider boosting their hedging skills.
Many organizations are offering education and training, much of it free, too fill the void.
“If people have questions or they want us to come out to a group of producers, we would be willing to take a look at that,” said James Facente, director of business development for the Minneapolis Grain Exchange, about hedging sessions it has been holding for farmers on the Prairies this winter.
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“We’re here. We’re available.”
At the Grainworld conference in Winnipeg recently, both MGEX, the operator of a 131-year-old hard red spring wheat futures contract, and the CME Group, the operator of Chicago’s world-dominant crop futures and options markets, held free educational and promotional seminars explaining their contracts.
Across Western Canada this winter, farmers have been able to attend sessions explaining futures, options and cash marketing systems that will apply to board grains after the CWB’s marketing monopolies disappear Aug. 1.
Governments in Alberta and Saskatchewan have organized meetings explaining how the main hedging and contracting systems will work.
Prairie-based marketing advisory services like FarmLink Marketing Solutions have taken part in those meetings, plus organized their own.
At CWB meetings across the Prairies this month, staff are explaining to farmers the new programs the revamped organization plans to offer.
Some of the information offered by these organizations is tailored to prairie farmers’ crops and their needs.
The Alberta and Saskatchewan meetings have been explaining the practical realities of hedging in the post-monopoly world.
The MGEX website contains information designed to demonstrate its belief that Minneapolis spring wheat futures can be used to hedge Canadian prairie spring wheat and durum.
The CME Group website contains how-to guides for hedging with futures and options. The CME Group also offers IPad applications that provide video clips on options strategies.
Many brokerages also offer how-to guides to futures and options hedging, many available to both clients and non-clients.
- Self-Study Guide to Hedging with Grain and Oilseed Futures and Options: www.cmegroup.com/trading/agricultural/self-study-guide-to-hedging-with-grain-and-oilseed-futures-and-options.html
- Introduction to Hedging Grains & Oilseeds webinar: www.cmegroup.com/education/interactive/webinars-archived/introduction-to-hedging-grains-and-oilseeds.html
- Self-Study Guide to Hedging with Livestock Futures & Options: www.cmegroup.com/trading/agricultural/self-study-guide-hedging-livestock-futures-options.html
- Canadian Marketplace section of the MGEX website: www.mgex.com/TheCanadianMarketplace_.html or http://www.mgex.com/MGEXResources_.html
- Wheat, Durum and Barley Marketing course (various prairie locations): www.farmlinksolutions.ca/learn-to-hedge/128-wheat-durum-and-barley-marketing
