Mission Statement "To grow profitablility, retire shareholder equity, and provide sound employment opportunities while striving to keep the local communities strong."
GOOD MORNING MARCH 07, 2014
We Have New Information On Our "Seed" Page and Our "Scholarship" Page!
West Fairfield
Co-Ag Farm
Recently there have been many questions about wether or not an HTA contract is feasible right now....so let's find out. Starting today, I sold 1 (5000bu) September 2014 Chicago (ZWU14) futures contract at 6.14, cash today was at 6.85. That gives me a starting basis point of +71. Today's nearby basis is +1.18. If the Septemeber basis runs to anything close to that number it will be great, and will add to what would have been a 6.85 cash sale. However, if the basis goes the other way it will be taking away from what would have been a 6.85 cash sale, and if it goes negative it will really hurt!
I'll also do the same with a December 2014 Chicago contract (ZWZ14) sold at 6.29, cash at 6.95 with a +66 starting basis to see is the later months fare any better or turn out worse.
I'll update weekly to track how this HTA contract is working out.
Take a look at the Co-Ag Farms J.V. Link to find out more.
Wheat futures are currently up 8. There is not only starting to be a US weather story building, but there is now some concern and question in regards to conditions in Ukraine (too dry). We also have the massive "wild-card" in Crimea hanging over the trade as well. As long as the world remains nervous about this situation I have to believe the US should continue to see good export demand.
Pea & Lentil bids - 01/16/14 - Markets are still rather sluggish. Still very little lentil buying, but buyers are at least testing prices by bidding low. We have resisted the low bids. We sold 2 cars of lentils to the USDA (No. 3 grade allowed) at prices well below market just to clean house of a few reruns and low quality. We also sold 2 cars of green split peas at better prices. Bleach issues continue to be a drag on the green pea market. Yellow split peas purchased by USDA were still below market and all done from the midwest.
