The Rural Voice, 1987-03, Page 24NEW AND USED BLUE SILOS
Repairs & Alterations
to all makes of blue silos
NEW
CROPHANDLER
SILOS
Parts by
Linkbelt
Quality is
our Specialty
BAAG
Airtight Storage Ltd.
Mount Forest Ont.
519-323-1203
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
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References available.
Stephen Thompson
Clinton 482-9225
Wingham 357-3865
22 THE RURAL VOICE
COMMODITY WATCH
Prices as of the
market close,
February 18, 1987
Corn — More of the same as
this market seems mired in negative
fundamentals:
• the resolution of the U.SJEEC trade
war has been discounted,
• farmer sign-up for the one-shot
bonus for the conservation reser-
vation program has been very active.
Payments will be with generic PIK
certificates,
• the likelihood that some $3.1 billion
in advance payments will be moved
up from October to March may bring
some $1.8 billion of generic PIK
certificates on the market,
• the Soviet Union continues to
import cheap wheat rather than feed
grains,
• carryover remains projected at 5.72 -
billion bushels,
• U.S. export sales lag 21.6 per cent
behind comparable totals from last
year. March corn futures lost 15 1/2
cents over the month to close at 144
1/4 on February 18.
***HEDGERS*** might consider
the purchase of limited risk PUT
options to lock in a selling price.
Short futures hedges at these histor-
ically low levels would be a question-
able strategy unless strict risk -manage-
ment practices were maintained.
Beans —Fora good part of the
month of February the bean market
was holding its recent lows, but neg-
ative fundamentals finally took their
toll. These negative fundamentals
include:
• continued optimal weather in South
America — Brazilian crop projected
at 16.5 million tonnes,
• exports continue to lag 28 per cent
below comparable numbers of a year
ago,
• carryover projections remain
unchanged at 615 -million bushels,
• rumours of a lowering of the new
crop loan rate from the current level
of $4.77.
March beans closed on February 18 at
4.85 1/4, a decline of 15 cents from
levels of a month ago.
***HEDGERS*** might consider
the purchase of November 475 PUT
options to give them some price
insurance. These options closed on
February 18 at 24 cents. A stop order
might be used at 12 cents to preserve
capital if beans begin to move higher.
Bean hedgers must also be concemed
with the direction of our dollar — as
it moves higher the bean basis moves
lower.
Live Cattle —Despite
a neutral to negative Cattle on Feed
report released recently, cattle markets
have maintained a firm tone. June
cattle closed February 18 at 61.80, a
gain of 3.13 from levels of a month
previous. A recent cattle inventory
report indicates that beef inventories
are on the rise. Beef cow inventories
are up 1 per cent from levels of a year
earlier. Inventories are still much
below record levels of 1975 when
numbers totalled 45.7 -million head.