The Rural Voice, 1986-08, Page 21Marketings 101 per cent
Inventory Report 95 per cent
Calf Crop 95 per cent
**HEDGERS** have some in-
teresting opportunities awaiting
them, but timing, as always, will
be critical. Feed costs are low, and
getting lower. Feeding operations
should be considering the purchase
of corn Call Options in the
December -July timeframe to lock
up feed costs into 1987. Hedges via
the put option market or short
futures positions might be ap-
propriate when the market seems
to run out of steam on the upside.
Keep an eye on the hog and belly
market, these markets signaled the
upturn in meat prices, they may
also give us the signal that this fast
bullish move is over with.
LIVE HOGS — Amazing what
one simple report can do to a
market! October hogs closed at
54.07 on July 21, a gain of 10.87
from their levels of one month
ago. The Quarterly hog report,
released in late June showed inven-
tory numbers, and breeding inten-
tions much lower than trade
estimates and the market has not
stopped going up since. Pork belly
traders have seen incredible
volatility in their markets, with
limit up or down daily moves
being a common occurence. A
logical reaction to high meat prices
and low feed prices would be an in-
crease in hog feeding, but some
speculators are wondering if many
cash grain farmers are going to
pass on feeding hogs and instead
put their grain into the government
loan program. Slaughter numbers
should be steady in the
September/October timeframe,
and then show some increase into
November. **HEDGERS** En-
joy! Don't get too wrapped up in
the "good times" and forget what
it was like in May and June. Watch
for feed hedging opportunities via
Call Options. Hog Put Options,
although very expensive, can serve
to lock in prices in the early spring
and summer of 1987.
JUST A WORD ABOUT ... THE
CANADIAN DOLLAR, ENERGY
AND INTEREST RATES
An advisory service in the U.S.
just released a comment on the
Canadian Dollar, suggesting a
lower trend for the short term.
They felt that the weakening oil
market, free trade issues, and
weakening balance of trade
numbers would push dollar values
lower. They may be right. If they
are, would it not be reasonable to
expect interest rates to stabilize
and possibly rise in an attempt to
support the currency? Producers
looking to lock up short term
financing might consider doing so
now.0
The information contained
herein is believed accurate,
however, Bache Securities Inc.,
assumes no responsibility for its
use. For specific recommendations
and suggestions regarding stop
orders please contact your nearest
Bache office.
David Clarke is an Account
Executive with the investment
firm of Bache Securities Inc., 376
Richmond Street, Suite 200,
London, Ontario, N6A 3C7,
1-800-265-1570.
CROPS UPDATE
WEDNESDAY, AUGUST 27
10:00 a.m. - 3:00 p.m.
CEN7'RALIA RESEARCH - DEMONSTRATION FARM
located 4 km north of C.C.A.T. campus
Wagon Tours starting at 10:00 a.m. and 1:00 p.m.
Tour Stops Include - 15 Minute Presentations by OMAF Crops Specialists and Researchers
• RED WHEAT PRODUCTION - SPRING AND WINTER — Jerry Winnicki
• CORN . PRODUCTION AND VARIETIES — Dave Morris
• SOYBEAN VARIETIES — Bob Forrest
• CANOLA - SPRING AND WINTER PRODUCTION
- VIRUS AND INSECT VECTORS
Carol Thompson, Joan McKinlay
• WHITE AND KIDNEY BEANS - ROW WIDTH TRIALS AND TECHNIQUES
Jim O'Toole
• WHITE AND KIDNEY BEANS - NEW HERBICIDE EVALUATIONS — Jim Shaw
• TILLAGE AND COMPACTION STUDIES - WHITE BEANS
John Heard, Brent Kennedy
• PRODUCTION PROBLEMS AND HIGHLIGHTS - 1986 — Hugh Martin
NOON HOUR PROGRAM:
Lunch Available on the Grounds
MARKET FORECASTS BY GUEST
Red Wheat - J.D. Cameron
Corn - Fred Lewis
Soybeans
White Beans
Wheat
Canola
Machinery Exhibits on Display
Hay bale compactor courtesy of Ont. Tech. Centre, Chatham
SPEAKERS:
- Red Wheat Association
- Ontario Corn Producers Association
- Soybean Growers Marketing Board
- Ontario Bean Marketing Boar('
- Wheat Producers Marketing Board
- Canola Producers Marketing Board
Ministry of
Agriculture
and Food
ONTARIO
Jack Riddell, Minister
Clay Switzer, Depw,
For further information contact:
Centralia College of
Agricultural Technology,
Huron Park, Ontario. (NOM 1Y0)
(519) 228-6691
AUGUST 1986 19