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The Rural Voice, 1986-02, Page 21i) Buy Canadian Dollar CALL OP- TIONS to protect our basis from fall- ing with a potential rally in the C -dollar ii) Purchase December 1986 corn futures at the 2.20 level to lock in feed costs — we can't grow it for that! iii) Watch for weakness in the livestock complex to purchase CALL OPTIONS on cattle to lock in replacement cattle costs. LIVE HOGS — The hog market was not immune to the weakness that sur- rounded the livestock complex in the last month. February hogs lost 2.98 on the month to close on January 24 at 45.55. U.S. reports indicate that average cash hog prices for the year of 1985 were 8 per cent below the levels of 1984 yet average retail prices remained unchanged for the year. The farmers' share of the retail price of pork drop- ped from 48 per cent in 1984 to a record low 44 per cent in 1985. This type of action would suggest that retailers' attitudes toward pricing and promotion of pork may have changed. Recent U.S. retailer emphasis has been on beef and poultry. We expect cash hog prices in 1986 to average slightly lower than 1985 levels. **HEDGERS** might consider a few strategies: i) Watch for market fluctuations for hedging opportunities, 1986 looks to be a year of ups and downs with no definite trends ii) Consider the purchase of December corn futures in the $2.20 area for a feed hedge iii) Consider "writing" CALL OP- TIONS against inventory to create ex- tra income. JUST A WORD ABOUT ... THE CANADIAN DOLLAR ... Doom and gloom for those who like to travel south, but for the Ontario farmer, our weaker dollar is a big bonus. Last year at this time, the dollar was under a great deal of pressure (some futures markets traded below 70 cents) but yet by the middle of summer the dollar was back up to .74 U.S. Op- tions exist on the Canadian dollar. A June 70 CALL OPTION is currently trading at about 1.05 - 1.10 points. This option would lock in a 70 cent dollar from now until approximately the middle of June, with limited downside risk. This strategy should be of interest to livestock and grain pro- ducers alike. ❑ The information contained herein is believed accurate, however, Bache Securities inc. assumes no responsibili- ty for its use. For specific recommen- dations and suggestions regarding stop orders piease contact your nearest Bache Office. David Clarke is an Account Ex- ecutive with the investment firm of BACHE SECURITIES INC., 376 Richmond Street, Suite 200, London, Ontario N7A 3C7, 1-800-265-1570. SNOWBLOWERS Superior Design Open Auger Extended End Plates Heavy Duty Ball Bearings Manual & Power Hoods Pressed Steel Frames for Added Strength BARFOOT'S WELDING AND MACHINE SHOP WIARTON, ONT. 519-534-1200 DEALER INQUIRIES WELCOMED Yo 18 YEAR AVERAGE ANNUAL COMPOUND RETURN 10 YEARS 19.8% 3 YEARS 21.3% 1 YEAR 29.3% That's the exceptional record of Industrial Growth Fund. Industrial Growth has achieved a record of superior long-term returns. Better still, it's managed for you by Mackenzie Financial Corporation under a strategy that gives top priority to protecting your capital. It's the answer to reducing the stress — and increasing the returns — of your investments. Write or call for details today! THE INDUSTRIAL GROWTH FUND vvn ADDRESS CITY PROV. PHONE POSiAL CODE (Home) (Business) 11/ Mures in December 1, /983 . 1 n, n//e r made onlc be prospectus. HENRY NICPON Associate Vice -President Investments Bache Securities 376 Richmond Street, Suite 200, London, Ontario N6A 3C7 Tel. (519) 673-3600 Watts Line 1-800-265-1570 FEBRUARY 1986 19