A market analyst says some growers are hesitant about forward pricing too much of their canola.

“We do see farmers who are reluctant to do pre-harvest selling,” said David Reiman with Cargill. “They will often make a decision sometimes when they are forced to. Maybe the bank payment or rent is due and you have to make a decision.”

Reiman says a good rule to follow is to sell when you want to sell and not when someone makes that decision for you.

“You tend to see a lot of pent-up up selling all at once,” Reiman said. “I think that hesitation or the reluctance to act in advance, I have seen literally millions of dollars left on the table over the years.”

Looking back at canola futures charts over the past 40 years, a very similar pattern emerges.

“I think some of the best marketing opportunities come in April, May, June and maybe into early July—when there is the most uncertainty about production. Those are sometimes the best opportunities both in cash and futures markets,” he said. “Often we see farmers afraid to move at that point because of production risks, but then they are forced to sell off the combine, which is the worse time of year.”

Reiman recommends to be as much as 50 percent sold in the spring. He estimates most growers are about 25 to 30 percent sold, which is much higher than twenty or thirty years ago.

There are several options available, such as an averaging contract. It allows growers to smooth out volatility by pricing a little bit every day across the pricing period.