Share Facebook Twitter Google + LinkedIn Pinterest Iowa State University just reported their 2017 corn and bean breakeven points. It showed that the average Iowa bean farmer can lock in 2017 crop profits with current fall market prices. That is not necessarily the case for corn. Corn on corn farmers would likely lose with today’s prices, while corn on beans are showing some profitability.I think many farmers will take notice and plant more beans in 2017. Still, South American bean production is an unknown. If we assume a small issue in South America supply, which leads to increases for U.S. prices, the added bean acres in 2017 may be offset. However, if bean acres exceed 90 million acres and South America doesn’t have a reduced supply, then substantially lower values are a real concern. Market ActionWith corn prices so low, I’m always looking for ways to add additional premium to my corn prices. Rather than wait around for prices to go up, which they may not, I manufacture trades that allow me to add premium to my corn prices, while minimizing risk. In the following example I detail out several trades I have done recently that show how premium can sometimes be added even during a sideways market. Trade Detail #1 — SepSep – Sold $3.30 calls against Dec futures for a 15 cent premiumHindsight — this was a little early and the price was low. So, I wanted to increase this price to profitable levels with the next trade. Trade Detail #2 — NovExpected market direction back in Nov ’16 — Sideways through JanTrade Detail — On 11/22/16 sold $3.60 straddle for 23 cents (selling a put and call at the same price)Potential Benefit — increase potential premium (23 cents) if market stays close to $3.60 at the end of JanuaryPotential Concern — reduced or no premium if the market moves significantly from that levelWhat happened — Option expired 1/27 at $3.61Action — I bought back both straddles for 2 cents totalWhy buy them back? One of the options is exercised if I don’t buy them back. I don’t want that. I just want the premium from the trade.Result — Net premium 21 cents and position unchanged.Current PositionSold Dec Futures: $3.30+ 15 cents — Trade #1 above, call premium+ 21 cents – Trade #2 above, straddle+ 11 cents – Market carry, rolling Dec futures to Mar+ 14 cents – Market carry, will roll from Mar to JulyCurrent Position Value Against July Futures ($3.30 + 61 cents of premium): $3.91Trade Detail #3 – 1/27/17Expected market direction today — Probably sideways with some upside potential into early summerTrade Detail — 1/27/17 sold July $3.90 straddle for 43 centsExpires 6/23/17 right when there is the best chance for a weather rallyPotential Benefit — If July futures close at $3.90 on 6/23, I keep the 43 cent premiumPotential concern — reduced or no premium if the market moves significantlyWith this, every penny lower than $3.90 I get less premium until $3.47 and at $3.47 or lower the original corn sale is removed, but I keep the 61 cents above to be added to another sale. For every penny higher than $3.90 I get less premium until $4.33. With $4.33 or higher I have to make another sale at $4.33 and my $3.90 sale is stalled at $3.90. Developing a strong marketing strategyThis trade is most profitable if the market goes nowhere (basically staying between $3.70 to $4.10 is optimal) through June. If that happens, I will have taken a trade that started in September at $3.30 a turned it into something between $4.10 and $4.30.However, I have to understand the potential concerns of each trade I do. While this trade is mostly betting the market will be sideways, the market can always go up or down too. While I don’t want to take a sale back at $3.47, I know it is a possibility. However, historically usually the market doesn’t trade significantly lower in the middle of June when weather conditions are still unknown and drought could still happen. I hope the market is above $4.30 in June, as I would be perfectly happy to be forced to sell at $4.30.I don’t like putting all my kernels in one bucket. I prefer to have multiple trades based upon many likely market outcomes throughout the year. I think a sideways market is a real possibility with what I know today, so this trade capitalizes on that. But, I also have protections in place in case something unforeseen happens.As I’ve said before, “hoping the market goes up” is not a marketing strategy. Neither is “make the most money I can.” The most profitable AND least risky marketing strategies include different trades that take into consideration likely scenarios while balancing unforeseen circumstances.Jon grew up raising corn and soybeans on a farm near Beatrice, NE. Upon graduation from The University of Nebraska in Lincoln, he became a grain merchandiser and has been trading corn, soybeans and other grains for the last 18 years, building relationships with end-users in the process. After successfully marketing his father’s grain and getting his MBA, 10 years ago he started helping farmer clients market their grain based upon his principals of farmer education, reducing risk, understanding storage potential and using basis strategy to maximize individual farm operation profits. A big believer in farmer education of futures trading, Jon writes a weekly commentary to farmers interested in learning more and growing their farm operations.Trading of futures, options, swaps and other derivatives is risky and is not suitable for all persons. All of these investment products are leveraged, and you can lose more than your initial deposit. Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful, and in accordance with applicable laws and regulations in such jurisdiction. The information provided here should not be relied upon as a substitute for independent research before making your investment decisions. Superior Feed Ingredients, LLC is merely providing this information for your general information and the information does not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision. The contents of this communication and any attachments are for informational purposes only and under no circumstances should they be construed as an offer to buy or sell, or a solicitation to buy or sell any future, option, swap or other derivative. The sources for the information and any opinions in this communication are believed to be reliable, but Superior Feed Ingredients, LLC does not warrant or guarantee the accuracy of such information or opinions. Superior Feed Ingredients, LLC and its principals and employees may take positions different from any positions described in this communication. Past results are not necessarily indicative of future results. He can be contacted at email@example.com.
Share Facebook Twitter Google + LinkedIn Pinterest In 2016, the Soil Fertility Lab at Ohio State offered a third party evaluation of proprietary soil amendments and foliar applications aimed at improving the mineral nutrition and productivity of crops. This service intends to provide timely and unbiased information on these products for farmers. In 2015, we tested submitted products from the following companies:AgZyme® by Ag ConceptsBAM-FX by Zero Gravity SolutionsMethods: Corn and soybean trials were planted at three sites on Ohio State University Research Farms: 1) Clark County at the Western Agricultural Research Station in S. Charleston, 2) Wayne County at the Ohio Agricultural Research and Development Center in Wooster, 3) Wood County at the Northwest Agricultural Research Station in Custar.Data collected include: 1) Complete soil sample analysis prior to planting, 2) Emergence counts at V5 for corn and soybean, 3) Whole plant sampling at V5 for total biomass and complete nutrient analysis, 4) Leaf sampling at R1 for corn and soybean for complete nutrient analysis, 5) Final stand counts at maturity for corn, and 6) Harvest grain yield with complete grain nutrient analysis.Results: Across all three sites, no consistent trends were found with any of the tested products. No products significantly affected a measured property at more than 1 site. For both corn and soybean, no product treatment yielded significantly greater grain than the control. This was only one year of field data, so interpretations should be made with caution, especially considering the dry weather encountered in the 2016 field season.The summary report can be found here: go.osu.edu/SAFAFor 2017, we have adjusted our pricing for this service, collecting less data but hopefully making the service more affordable to vendors and retailers. If you are interested in enrolling your product, contact Steve Culman at firstname.lastname@example.org, or visit go.osu.edu/SAFA.
Goa Chief Minister Manohar Parrikar, who is currently undergoing medical treatment in the U.S., is expected to return to Goa on June 15, senior BJP MLA Nilesh Cabral said on Tuesday. “Chief Minister Manohar Parrikar is returning to Goa on June 15,” Mr. Cabral told the media on the sidelines of a State Tourism Ministry press conference in Panaji. Upendra Joshi, an official on special duty at the Chief Minister’s office also confirmed to The Hindu the news of Mr. Parrikar’s return after more than three months.However, a senior party official said he was still unsure. “As a party we do not know the exact date of arrival. He is likely to come to Goa in June, but the tickets as far as we know haven’t been booked yet,” the official said, requesting anonymity.An office memo, issued by the Home Ministry mentioning Mr. Parrikar’s presence at the State-organised Revolution Day event on June 18, went viral on social media. The memo states that he is expected to arrive at 8:50 a.m. for the event at the Martyr’s Memorial in Panaji. “Arrival of honourable Chief Minister. He will be received by Chief Secretary and Director General of Police,” the memorandum states, further listing the Chief Minister’s speech at 9:25 a.m.A BJP functionary, when contacted on Monday in this regard, had ruled out Mr. Parrikar’s return by June 18. “We are not aware of his return to Goa. As far as we know, there are some tests which are expected to be conducted later this month, after which his return dates will be confirmed. But as far as the party is concerned, as of now, he will not be in Goa to attend the June 18 function,” the official said requesting anonymity.
Eight vehicles, which were part of NCP MP Supriya Sule’s convoy, were fined after being found parked in a no-parking area in Solapur city, the police said on Sunday.Ms. Sule on Tuesday evening participated in an event, ‘Sanvad Taishi’, a mass outreach campaign, ahead of the Assembly polls, at the Indian Medical Association’s hall at Dufferin Chowk in Solapur.As the programme started, there was a traffic jam in the area following which the police asked the event organisers to remove some vehicles parked in the no-parking area outside the premises, a traffic police official said. However, despite repeated warnings, the vehicles were not removed.Subsequently, eight vehicles, including some SUVs, which were part of Ms. Sule’s convoy, were fined under provisions of the Motor Vehicles Act.These included a four-wheeler registered in the NCP’s name and another vehicle in which Ms. Sule, the Lok Sabha member from Baramati (Pune district), arrived for the event, he said. “We are not sure if any of the vehicles belonged to the MP,” the official said.However, some members of the NCP’s youth wing claimed there was no other place in the area to park the vehicles and alleged the action was taken “deliberately” by the police.Ms. Sule on Friday launched her ‘Sanvad’ (dialogue) campaign to reach out to the public ahead of the Assembly elections. In the first phase, Ms. Sule, who is the daughter of NCP chief and former Union Minister Sharad Pawar, will cover Ahmednagar, Solapur, Jalgon, Nashik, Thane and Navi Mumbai, a party leader said.