LEONARD LUMBER REPORT: THIS MARKET IS STILL A GRIND, BUT THIS TIME A GRIND HIGHER
Recap: This market is still a grind, but this time a grind higher. The January futures contracts were up $3.50, while the cash print was up $3. It did feel better than that all week. There may be better confidence building up with the recent cash trade. Also, the projections set in January are coming into play. The expectation was a reduced supply coming out of Canada and a slowing of Euro wood coupled with less demand. The last estimate I saw was an 11.7 shipment number expected for 2023 out of Canada. We were looking for a 12+ number ...
Hedging: Futures and Options 101
Futures trading has been around for hundreds of years with the first exchange, Dojima Rice Exchange, starting in Japan in 1730. The United States got its first official commodity trading exchange in 1848 when the Chicago Board of Trade (CBOT) was created. Chicago was the ideal location for the exchange with rail lines and proximity to the heartland of American agriculture and an already booming metropolis. As one would expect, corn, soybeans, and wheat were among the first futures contracts traded with corn leading the way. Eventually the CBOT merged with the CME (Chicago Mercantile Exchange) to form the CME ...
RCM Ag Services’ Mike Merucci joins ST Genetics podcast to discuss Dairy Hedging
In the ST Talks podcast episode, Laura Demer explores the topic of milk hedging with Pat Carroll, a partner at Geno Source, a 5,000 cow dairy, and Mike Merucci, head of the Dairy Division for RCM Ag Services. Mike Merucci underscores the necessity for dairy producers to establish a risk management plan, understand their production costs, and align long term goals. He highlights the advantages of insurance products like Dairy Revenue Protection (DRP), especially for those less familiar with futures and options trading. Pat continues by emphasizing the significance of starting slowly in milk hedging, gradually increasing involvement as your ...
LEONARD LUMBER REPORT: January gained $10 for the week, but it felt much better than that
Happy Veterans Day! One of our own, a World War II veteran, is celebrating this weekend. I believe he was in the Army-Aircorp and served with the French underground. Jack Hall from Hall Lumber Sales in Middleton, Wis, is 99 years old. If you are wondering what he likes, he is a big proponent of owning more precious metals and less cash. Happy Veterans Day to all who served! Recap: January gained $10 for the week, but it felt much better than that. Momentum is getting created just by the fact that sentiment is less bad. While the upside is ...
AG MARKET UPDATE: NOVEMBER 9
The November USDA Report raised US yields and ending stocks. From what we have been hearing about yields in the eastern corn belt the rise in yields was not that unexpected while a 1.9 bu/ac jump higher to 174.9 was not quite expected. Rarely does the November report differ so much from the Sep/Oct yields, but the yields in IL, IN, and OH made up for losses seen in the western corn belt and plains. Current support is at $4.67 for Dec corn, but a close below that could lead lower. If that holds, we should expect the sideways trade ...
