Pro Farmer's Daily Advice Monitor

Posted on 07/09/2020 1:15 PM

advice

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  • July 9: No changes.
  • July 8: Increase 2020-crop wheat sales. Increase 2020-crop cotton sales; exit cotton hedges. Details below. 
  • July 7: No changes. 
  • July 6: No changes.
  • July 2: No changes.

*Note: Check below daily to see if we recommend catch-up sales for individual markets.

Corn

Cash-only marketers

2019 crop: 100% sold 

2020 crop: 30% forward sold for harvest delivery

Hedgers — cash sales

2019 crop: 90% sold 

2020 crop: 30% forward sold for harvest delivery

Hedgers — futures/options

2019-crop: 20% hedge in short December corn futures at $3.37 1/2

2020-crop: 20% hedge in short December corn futures at $3.37 1/2

Use the strong price rally to make sure you are current with advised old- and new-crop sales. We intend to make more new-crop sales on additional price strength.

Soybeans

Cash-only marketers

2019 crop: 95% sold

2020 crop: 20% forward sold for harvest delivery

Hedgers — cash sales

2019 crop: 95% sold 

2020 crop: 20% forward sold for harvest delivery

Hedgers — futures/options

No positions

Use the strong price rally to make sure you are current with advised old- and new-crop sales. We intend to make more new-crop sales on additional price strength.

Wheat

Cash-only marketers

2020 crop: 50% sold 

Hedgers — cash sales

 2020 crop: 50% sold

Hedgers — futures/options

20% 2020-crop hedge in short December SRW futures at $5.09

Use the strong rally to get current with advised sales. We'll likely make additional sales when the rally shows signs of stalling. 

Cotton

Cash-only marketers

2019 crop: 100% sold

2020 crop: 30% forward sold for harvest delivery.

Hedgers — cash sales

2019 crop: 100% sold

2020 crop: 30% forward sold for harvest delivery.

Hedgers — futures/options

2020 crop: 25% hedge in December cotton futures at 58.94 cents.

Get current with advised sales and be prepared to make additional sales on further price strength. 

Livestock

Cattle

3rd qtr. 2020

0%

4th qtr. 2020

0%

1st qtr. 2021

0%

2nd qtr. 2021

0%

Carry all risk in the cash market for now. But with futures back above the cash market, an overdone price runup could present a hedging opportunity. 

Hogs

3rd qtr. 2020

0%

4th qtr. 2020

0%

1st qtr. 2021

0%

2nd qtr. 2021

0%

Continue to carry all risk in the cash market. Be prepared to hedge the next extended corrective move higher.

Feed

Corn

3rd qtr. 2019

0%

4th qtr. 2020

0%

1st qtr. 2021

0%

2nd qtr. 2021

0%

You should be hand-to-mouth on corn-for-feed needs for now. We'll wait on the next price pullback before extending coverage beyond hand-to-mouth.

Meal

3rd qtr. 2020

33%

4th qtr. 2020

0%

1st qtr. 2021

0%

2nd qtr. 2021

0%

You should have all soybean meal needs covered in the cash market through the end of July.  We'll wait on the next price pullback before extending coverage.

 

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