Combinables Price Tracker

Clive

Staff Member
NFFN Member
Location
Lichfield
Notice they are also only indicative price - you couldnt necessarily ring up and trade them at that money. Its a theoretical value, and you could bid and get an offer at £1/t more - then up to you if you buy them at the quid more or not. You would also be subject to paying brokerage if you did trade.

The last May calls I did were £5/t to the farmer I think at £142 strike, which is the cost over the ring plus £1/t commission, so not that much more than it would cost the farmer direct with a broker. For that we are paying for the options on the day, managing the futures if they want to trade in and out (including any margin calls), sorting out the paperwork, and paying the brokerage with the futures broker. Not much to charge I dont think for the service.

Assuming you are a merchant or group ? When you do an option deal who owns the option ? Ie is it in the farmers own name ?

Prices I’ve posted are (subject to timing and moving market hence it say indicative) reflective of what I would pay as a farmer with that broker today
 

franklin

New Member
Location does make a difference! That's spot feed wheat round us!! What premium does that pay to farm over your local feed wheat price?

No, that is the de facto local feed wheat price. Vivergo and Ensus are not premium homes ie they do not want anything more special than feed wheat. Hence their price is a feed price. The fact it is maybe £4 over what other homes might consider a feed wheat price makes no difference at all. Infact, apart from the annual shutdown, they are both no-messing destinations with decent intake and modern kit that doesnt seem to break down. Certainly makes me question my still growing milling wheats but recently the options were:

One price ex farm to Vivergo
Same price ex farm to a mill, I think it was Selby for a 74/180 or some spec anyway.

No incentive at all to supply to anywhere but Vivergo / Ensus for much under a tenner - wheat from here will be going to Ensus I expect in March and April. And thats an easy 110 mile haul passing several homes who take low spec milling / hard gp4s.

Everyone within arms reach of a decent motorway should find their haulage rate to one of these mills and speak to their local rep to get an up-to-date delivered price there.
 

Condi

Member
Assuming you are a merchant or group ? When you do an option deal who owns the option ? Ie is it in the farmers own name ?

Prices I’ve posted are (subject to timing and moving market hence it say indicative) reflective of what I would pay as a farmer with that broker today

They are not necessarily what you would pay.

They are what the Black Scholes model (or an other model) suggests the options are worth. Like any market there will be a bid (buying) and ask (selling) price. So while theoretically, based on current underlying futures price and volatility the 142 call might be worth £3.75, if you bid £3.75 for them and they are offered at £4.50 then you cant trade them at £3.75 because nobody is willing to sell them at that. You would also expect to pay your broker a fee on top of the traded level (at a guess 15-20p/t).
 

Flat 10

Member
Arable Farmer
Location
Fen Edge
Rumour l heard was that EU voting to remove osr from biodiesel (where’s it going to come from instead?!) in 2020. Though what that has to do with today’s prices l don’t know.,,,,
 

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