Midweek Marketing Game Plan Update

March 29, 2017 01:10 PM

Pro Farmer Editor Brian Grete provides highlights:

Corn: Hedgers and cash-only marketers have 50% of 2016-crop production sold in the cash market and 10% of expected 2017-crop sold for harvest delivery via hedge-to-arrive contracts. We are targeting the $3.75 area in May corn futures and the $3.95 level in December futures to increase old- and new-crop sales. We'll reevaluate those sales target levels following USDA's reports Friday.

Soybeans: Hedgers have 75% of 2016-crop production sold in the cash market and the remaining 25% hedged in July soybean futures at $9.91 1/2. Hedgers also have 20% of expected 2017-crop sold for harvest delivery via hedge-to-arrive contracts, with another 30% of expected production hedged in November soybean futures at $9.82 1/4. We'll reevaluate the hedge positions following Friday's USDA reports. Cash-only marketers have 65% of 2016-crop sold and 20% of expected 2017-crop production forward sold via hedge-to-arrive contracts for harvest delivery. We are targeting the $10.25 to $10.50 area in May soybeans and the $10.20 to $10.30 level in November futures to increase old- and new-crop sales.

Wheat: Hedgers and cash-only marketers have 70% of 2016-crop sold in the cash market. Hedgers and cash-only marketers also have 20% of expected 2017-crop sold for harvest delivery via hedge-to-arrive contracts. We have lowered our sales targets to $4.45 to $4.55 in May SRW futures and $4.55 to $4.65 in July SRW futures to make additional sales.

Cotton: Hedgers and cash-only marketers have 80% of 2016-crop sold in the cash market. Hedgers and cash-only marketers now have 35% of expected 2017-crop sold for harvest delivery. Use price strength to get current with advice. We are targeting 80.00 cents in May futures for making additional old-crop sales.

Cattle: Fed cattle producers have 25% of second-quarter hedged in June live cattle at $111.95, 50% of third-quarter in October live cattle at $107.20 and 25% of fourth-quarter in December live cattle at $108.00.

Hogs: All risk is carried in the cash market. We believe traders are overly pessimistic and are not interested in hedging with summer-month futures trading at a relatively modest premium to the cash index.

Feed: All corn-for-feed and soybean meal needs are covered in the cash market through the end of April. Make sure you are current with this advice. We'll reevaluate the need to extend coverage after USDA's Friday reports.