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WVU Jefferson County Extension Service
1948 Wiltshire Road,
Suite 3
Kearneysville, WV 25430-9644
(304) 728-7413
FAX (304) 728-4101 |
Local Weekly Prices
Market Information and Prices
Chicago Merchantile Exchange (Livestock and Milk Futures)
Chicago Board of Trade (Grains)
Maryland Grain and Livestock Report
Pennsylvania Market Reports
Virginia Basis Tables
Virginia Market News
Market Prices (Boards of Trade)
.......... Soybeans
.......... Corn
.......... Wheat
.......... Live Cattle
.......... Feeder Cattle
.......... Lean Hogs
.......... Milk
.......... Daily LDP Rates
USDA Reports
Crop Production and World Agriculture Supply Demand Estimates
April 9, 2008
May 9, 2008
June 10, 2008
July 11, 2008
Grain Stocks
September 30, 2008
2008 Prospective Plantings Report
(March 31, 2008)
Agriculture Marketing - Fall 1997
Dr. James Kendrick, University of Nebraska
(Requires Real Player)
As of the spring of 2008, Jefferson County has begun a grain marketing club. The group has developed a model farm which includes 500 acres of corn, 300 acres of soybeans and 200 acres of wheat\soybean double crop. The group is in the process of developing a marketing plan for that farmand has already developed enterprise budgets for corn, soybeans, wheat\soybeans double crop.
Marketing Plan
Jefferson County Grain Marketing Club
Model Farm
Marketing Plan 2008 – 2009
Corn
No. of acres – 500
Actual Production Harvest – 125 bu./acre
Total Production – 62,500
Variable Expense per acre - $309.54
(Excluding Harvest, Drying and Hauling Charges)
Variable Expense per bushel - $2.48
All Expenses per acre - $497.63
All Expenses per bushel - $3.98
Projected Average Price - $3.75 - $4.25
Minimum Cash Target Price - $5.25
2/21/08 –
Marketing Plan
2/20/08
Forward Contracted 5,000 bushels for December Delivery to Hostetter at $5.35/bu.
3/5/08
Forward Contracted 10,000 bushels for December Delivery to Trenton Mill Farms at $5.62
3/14/08
Priced 5,000 bushels at $5.65 with Futures Contract
Initial Margin: $1,350
Maintenance Margin: $1,000
Amount in Margin Account: $2,350.00
4/2/08
Price: $6.03 = - $1900.00
Amount in Margin Account: $4,250.00
4/2/08
Forward Contracted 10,000 bushels for December Delivery to Perdue
at $5.85
4/9/08
Buy Call @ $6.10 Strike Price($.80) =- $4,000.00
6/11/08
Buy five(5) Calls @ $9.20 Strike Price ($.37) =
- $9,250.00
Summary of Marketings
| Date |
Bushels |
Price |
To |
Basis |
Gross |
| 2/20/2008 |
5,000 |
$5.35 |
Hostetter |
N/A |
$26,750 |
| 3/5/2008 |
10,000 |
$5.62 |
Trenton Mill Farm |
N/A |
$56,200 |
| 3/14/2008 |
5,000 |
$5.65 |
Futures Contract |
-$.11 |
$27,700 |
| 4/2/08 |
10,000 |
$5.85 |
Perdue |
N/A |
$58,500 |
| 4/9/08 |
5,000 |
$6.10 |
Call |
$.80 |
$4,000 |
| 5/29/08 |
10,000 |
$6.15 |
Trenton Mill Farm |
-$.10 |
$61,500 |
| 6/11/08 |
25,000 |
$9.20 |
Call |
$.37 |
$9,250 |
Bushels Marketed: 40,000
Percent of Potential Crop: 64%
Weighted Average Income per bushel: $5.44
22,500 bushels un-priced
Soybeans
No. of acres – 300
Actual Production Harvest – 40 bu./acre
Total Production – 12,000
Variable Expense per acre - $192.09
(Excluding Harvest, Drying and Hauling Charges)
Variable Expense per bushel - $4.80
All Expenses per acre - $305.24
All Expenses per bushel - $7.63
Projected Average Price - $10.00 - $10.80
Minimum Cash Target Price - $11.00
Marketing Plan
2/20/08 – Forward Contracted 1,000 bushels for December Delivery to Perdue at $13.44/bu.
3/19/08 - Forward Contract 1,000 bushels of soybeans to Risser Grain @11.70/bu.
3/12/08
Bought Call with Strike Price of $13.00 @ $1.41
Bought Put with Strike Price of $13.20 @ $1.49
Initial Cost of Call: $7,050
Initial Cost of Put: $7,450
Total Cost: $14,500
3/26/08
Sell Call @ 1.61 = $8,050.00
Profit: $1,000.00
5/29/08
Forward Contract 3,000 bushels of soybeans for November delivery to Trenton Mill Farm at $12.71
6/11/08
Forward Contract 5,000 bushels of soybeans for November delivery to Trenton Mill Farm at $13.71
Buy Put with Strike Price of $12.60 @ $.59 = - $2,950
Summary of Marketings
| Date |
Bushels |
Price |
To |
Basis |
StrikePrice |
Gross |
| 2/20/08 |
1,000 |
$13.44 |
Perdue |
N/A |
N/A |
$13,440 |
| 3/12/08 |
5,000 |
-$1.41 |
Buy Call |
N/A |
$13.00 |
-$7,050 |
| 3/12/08 |
5,000 |
-$1.49 |
Buy Put |
N/A |
$13.20 |
-$7,450 |
| 3/19/08 |
1,000 |
$11.70 |
Risser Grain |
N/A |
N/A |
$11,700 |
| 3/26/08 |
5,000 |
$1.61 |
Sell Call |
N/A |
$13.00 |
$8,050 |
| 5/29/08 |
3,000 |
$12.71 |
Trenton Mill |
-$.70 |
N/A |
$38,130 |
| 6/11/08 |
5,000 |
$13.71 |
Trenton Mill Farm |
-$.70 |
N/A |
$68,550 |
| 6/11/08 |
5,000 |
-$.59 |
Put |
N/A |
$12.60 |
-$2,950 |
Bushels Marketed: 10,000
Percent of Potential Crop: 59%
Weighted Average Income per Bushel: $12.24
7,000 bushels unmarketed
Price 1,000 bushels at $11.50 cash price or by April 10th using a Forward Cash
Price 1,000 bushels at $11.75 or by April 15 th using a Forward Cash
Price 1,000 bushels at $12.00 or by May 1 st using a Forward Cash
Price 1,000 bushels at $12.25 or by May 15 th using a Forward Cash
6,000 bushels un-priced
Wheat\ Double Crop Beans
No. of acres – 200
Wheat
Actual Production Harvest – 70 bu./acre
Total Production – 14,000
Soybeans
Actual Production Harvest –25 bu./acre
Total Production – 5,000
Variable Expense per acre - $401.84
(Excluding Harvest, Drying and Hauling Charges)
Variable Expense per bushel - $4.23
All Expenses per acre - $542.83
All Expenses per bushel - $5.71
Projected Average Price
Wheat - $6.50 – $6.80
Soybeans - $10.00 – $10.80
Minimum Cash Target Price – $11.00
Marketing Plan
2/20/2008– Forward Contracted 1,000 bushels for July Delivery to Risser Grain at $9.58/bu.
3/19/2008 - Forward Contracted 1,000 bushels for July Delivery to Trenton Mill Fram at $9.63/bu.
4/3/2008 - Forward Contracted 1,000 bushels for July Delivery to Trenton Mill Farm at $7.83/bu.
5/29/08 - Forward Contracted 8,000 bushels for July Delivery to Risser Grain at $6.09/bu.
Summary of Marketings
| Date |
Bushels |
Price |
To |
Basis |
Gross |
| 2/20/2008 |
1,000 |
$9.58 |
Risser Grain |
-.$02 |
$9,580 |
| 3/19/2008 |
1,000 |
$9.63 |
Trenton Mill Farm |
-$1.75 |
$9,630 |
| 4/3/2008 |
1,000 |
$7.83 |
Perdue |
-$1.29 |
$7,830 |
| 4/30/08 |
5,000 |
$8.00 |
Put |
N/A |
-$3,500 |
| 5/29/2008 |
8,000 |
6.09 |
Risser Grain |
-$1.50 |
48,720 |
| 7/15/08 |
5,000 |
$8.00 |
Put |
Expired |
$0.00 |
| 7/31/08 |
3,000 |
5.82 |
Risser Grain |
-$2.10 |
$17,460 |
Bushels Marketed: 14,000
Percent of Potential Crop: 100%
Weighted Average Income per bushel: $6.41
Price 1,000 bushels at $8.00 or by April 15 th using Forward Cash
Price 1,000 bushels at $8.25 or by May 1 st using Forward Cash
Price 1,000 bushels at $8.50 or by May 15 th using Forward Cash
Soybeans
Actual Production Harvest –25 bu./acre
Total Production – 5,000
Variable Expense per acre - $448.42
(Excluding Harvest, Drying and Hauling Charges)
Variable Expense per bushel - $4.72
All Expenses per acre - $526.41
All Expenses per bushel - $5.54
Projected Average Price - $10.00 - $10.80
Minimum Cash Target Price – $11.00
Marketing Plan
All left un-priced
Sell 5,000 bushel futures contract at $14.50 or by May 15th
Weekly Local Prices
The WVU Extension Service is very appreciative of local grain marketers providing weekly prices. These prices are based on calls made on Wednesday morning of each week and basis is calculated on Tuesday's close. All prices are subject to change at a moments notice. Please call any of the vendors below for current prices.
FOB Elevator
AgCom
800.359.8899
FOB Gettysburg
65 miles from
Charles Town
Talk to Sue
|
Eddie Mercer Agri-Services
800.732.1545
FOB Frederick
28 miles from
Charles Town |
Martins Elevator
800 .874.2978
FOB Maugansville
44 miles from
Charles Town
Talk to Alvin Martin |
Hostetter Grain
800.642.2481
20 miles
Talk to
Bill Hostetter
|
PACMA
800.733.3647
FOB Greencastle
52 miles from
Charles Town
Talk to Bob |
Average Prices - 7/30/08
| |
Corn |
Basis |
Soybeans |
Basis |
Wheat |
Basis |
| Cash |
$6.08 |
+$.10 |
$13.84 |
0.00 |
$5.49 |
-$2.43 |
| New |
$5.95 |
$0.33 |
$12.69 |
-$1.23 |
|
|
FOB Charles Town
McGeary Grain
800.624.3279
Talk to
Bill Herman |
Perdue Grain
800.650.4389
Talk to
Charlie Stubbs
|
Risser Grain
888.845.1814
Talk to
Brent |
Trenton Mill Farm
410.239.3226
Talk to
George Mielky |
Averages Prices - 7/30/08
| |
Corn |
Basis |
Soybeans |
Basis |
Wheat |
Basis |
| Cash |
$5.87 |
-$.07 |
$13.70 |
-$.14 |
$5.57 |
-$2.35 |
| New |
$5.86 |
-$.28 |
$12.79 |
-$1.13 |
|
|
FOB Salisbury, MD
Close 7/30/08
| |
Corn |
Basis |
Soybeans |
Basis |
Wheat |
Basis |
| Cash |
$6.27 |
|
$14.35 |
+$.30 |
$5.73 |
-$2.15 |
| New |
$6.16 |
-$.05 |
$13.40 |
-$.65 |
$6.61 |
-$2.00 |
Agricultural Marketing - 1997 ( All presentations require RealPlayer) Not all presentations have been uploaded at this time.
| Course Overview and Intro to the global forces that combine to establish prices for grains and livestock |
Futures Contracts in grains and the concept of carry costs among the old crop futures contract months |
How Carry in the old crop futures months is affected by avaialble storage space |
| How changes in the value of the dollar and changes in interest rates impact exports and imports and thus agriculture pricing. |
Types of orders given to brokers (Market, Limit, Stop, MIT, on close) and examples of use |
Changes in fundamentals that make spreads and straddles work. A corn spread and a soybean spread are used as examples. A corn/ wheat straddle is introduced. |
| The corn wheat/ straddle continued |
Fundamentals affecting straddles between different commodities. |
Hedging Basics |
| Introduction to Technical Analysis |
Bar Charts, Moving Averages, RSI Charts |
RSI Charts, Stochastics, Producer Grain Contracts with buyers - Flat Price Contracts |
| Flat Price Contracts Continued |
Basis Contracts |
Basis Contracts, Hedge to Arrive Contracts, Deferred Pricing Contracts, Priced Later Contracts |
| Introduction to the economics of grain storage |
Grain Storage Continued |
Agricultural Options basics |
| Option Basics Continued |
Options: Protected vs. locked price |
Using Options to speculate on price rise after grain is sold. Introduction to Implied Volatility |
| Synthetic PUTS\ Use of Implied Volatility |
Synthetic PUTS (continued) Fences |
Vertical Call Spreads \ Minimum Price Contracts \Time Value Decay |
| Review of alternative option strategies \ Introduction to grain merchandizing |
Basics of how elevators and sub-terminals determine bid and offer prices |
Calculation of bid & offer prices by grain merchandizers |
| Calculation of bid & offer prices by grain merchandizers continued |
Calculation of bid & offer prices by grain merchandizers continued |
More techniques of grain merchandizing |
| Ex-Pit trades as a refinement to grain merchandizing |
Ex-Pit trades as a refinement to grain merchandizing |
Crush Spreads |
| Crush Spreads continued Specification Production and trade options |
Specification Production and trade options continued. Delivery on Cattle Futures |
Corn Yield Futures \ Delta measurement of option premiums grading of VCS |
| Use of the trailing stop orders to enter the market \ Working with a broker |
Marketing strategies |
Soybean marketing strategies |
| General marketing strategies |
|
Kendrick's biases on establishing a marketing plan |
|
