Pro Farmer's Daily Advice Monitor

Posted on 02/25/2021 1:30 PM

advice

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  • Feb. 25: Order hit for 2020-crop cotton sales. Make 2021-crop cotton sales, too. Details below. 
  • Feb. 24: Increase 2020-crop cash-only corn sales. Add second- and third quarter hog hedges. Enter a standing order to increase 2020-crop cotton sales. Details below. 
  • Feb. 23: No changes.
  • Feb. 22: No changes.
  • Feb. 19: No changes.

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

Corn

Cash-only marketers

2020 crop: 80% sold

2021 crop: 20% forward sold for harvest delivery 

Hedgers — cash sales

2020 crop: 80% sold

2021 crop: 20% forward sold for harvest delivery 

Hedgers — futures/options

No positions

Get current with advised 2020- and 2021-crop sales. We'll likely hold remaining 2020-crop inventories into at least spring, unless there are signs of a major top.

Soybeans

Cash-only marketers

2020 crop: 90% sold

2021 crop: 20% forward sold for harvest delivery 

Hedgers — cash sales

2020 crop: 90% sold

2021 crop: 20% forward sold for harvest delivery 

Hedgers — futures/options

No positions

Get current with advised 2020- and 2021-crop sales. 

Wheat

Cash-only marketers

2020 crop: 85% sold 

2021 crop: 30% forward contracted for harvest delivery

Hedgers — cash sales

2020 crop: 95% sold

2021 crop: 30% forward contracted for harvest delivery

Hedgers — futures/options

No positions

Get current with advised sales. We'll likely wait until we know more about the winter wheat crop coming out of dormancy and spring wheat acreage before making additional sales. 

Cotton

Cash-only marketers

2020 crop: 90% sold

2021 crop: 40% forward sold for harvest delivery 

Hedgers — cash sales

2020 crop: 90% sold

2021 crop: 40% forward sold for harvest delivery 

Hedgers — futures/options

No position

On Feb. 25, May cotton futures hit our standing order at 95.00 cents to sell another 10% of 2020-crop in the cash market. We also advised cotton producers to sell another 10% of expected 2021-crop for harvest delivery.   

Livestock

Cattle

1st qtr. 2021

0%

2nd qtr. 2021

0%

3rd qtr. 2021

0%

4th qtr. 2021

0%

Carry all risk in the cash market for now. Downside risk should be limited from current levels.  

Hogs

1st qtr. 2021

0%

2nd qtr. 2021

25% in April at $89.425

3rd qtr. 2021

25% in July at $95.375

4th qtr. 2021

0%

Get current with advised hedges. Be prepared to extend hedge coverage on additional price strength. 

Feed

Corn

1st qtr. 2021

67%

2nd qtr. 2021

0%

3rd qtr. 2021

0%

4th qtr. 2021

0%

You should have all corn-for-feed needs covered in the cash market through February. Be prepared to go hand-to-mouth beyond that unless May futures drop to $5.25 or lower.

Meal

1st qtr. 2021

67%

2nd qtr. 2021

0%

3rd qtr. 2021

0%

4th qtr. 2021

0%

You should have all soybean meal needs covered in the cash market through February. Be prepared to go hand-to-mouth beyond that unless May futures drop into the $420 to $400 range. 

 

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