The Rural Voice, 1987-01, Page 22SATELLITE
ENTERTAINMENT
AT ITS BEST
FARM MONEY
SERVICES
Stephen Thompson
If you need bank forms,
government forms, and
income tax done well
for a good price, I do it.
My customers and their
lenders tell me my work
is good and the price is
better.
Now is the time to
combine all those bank,
government, and tax
forms into one well-
prepared, low-cost
package.
o References available.
Stephen Thompson
Clinton 482-9225
Wingham 357-3865
18 THE RURAL VOICE
COMMODITY WATCH
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Prices as of the
market close
December 5, 1986
Corn — December corn prices
fell sharply through the month, with
the market becoming especially weak
immediately following the U.S.
Thanksgiving holiday. December
corn closed at 1.61, a decline of 7
cents over the month. New contract
lows of 1.60 1/4 were made during
the month. Traders continue to ex-
press concerns about the generic PIK
certificates and their impact on the
market over the January -March time
frame. Protectionism also weighs
on the minds of many traders, with
thoughts of potential production
controls and higher support prices
creating further concern as to the
short-term direction of com prices.
**HEDGERS** will probably
have already made some marketing
decisions. For those who are con-
tinuing to store corn and looking for
advances in Ontario basis levels in
early 1987, be aware of futures risk.
There is no advantage in storing corn
until March, selling on a basis rally of
20 cents, but losing 20 cents on
futures deterioration.
A low-risk method of hedging
stored inventory futures risk is by
purchasing PUT options. May 180
PUTS are trading around 7 3/4 cents.
Hedgers who decided to market cash
corn at harvest could consider repur-
chasing CALL options, although the
near-term trend appears to be lower
and these CALLS may be less
expensive in the future.
Soybeans — January beans
have been fairly quiet over the month,
with little news to influence the trade
over the harvest period. There are
some good fundamentals in the
market:
• strong U.S. demand originating
from both domestic demand and export
interest,
• lower than expected U.S. oil
stocks,
• lack of farm selling.
Other fundamentals are not too
positive, including the recent much-
needed rainfall in northern Brazil and
the potential postponement of Soviet
purchases of U.S. beans and product if
the South American crop looks good.
**HEDGERS** may have to get ready
for a quiet month or so on the bean
complex. Traders will begin to watch
critical weather situations in South
America in the months of January and
February. Sophisticated farm
marketers might consider "writing" out
of the money CALL options against
inventory to create income. This
would be for experienced farm
marketers only.
Live Cattle —
Livestock markets have been mixed
over the month, with cattle losing
some ground and hogs performing
slightly better. February live cattle
closed at 57.37 on December 5, a loss
of .85 over the month. One of the
noticeably supportive features in this
market has been the lack of cow
slaughter. In the past weeks, cow
slaughter seems to be on the rise,
moving from 20 per cent of total