EB—Lancaster Farming, Saturday, January 9.1982
Farming’s Futures
By David K. Sauder
Commodity Advisor
Trade Tech, Lancaster
This Farming’s Futures column
begins a new year and a new series
of articles designed to give far
mers a more systematic picture of
the commodities market.
Your many questions in the past
have helped us determine areas of
interest to our readers. In addition,
we have found a general lack of
information about what the
commodities market does and how
farmers can use it.
Please continue to send us your
questions and tell us specific things
about commodities you would like
covered. Material from your
letters is used in the Farming’s
SEPTIC TANKS
n •r'w
Drain Fields - Fitter Beds
Specializing in Sewage Systems
All Types on Lot
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Contractors
GORDONVILLE
Futures column to cover subjects
of interest.
Some of the scheduled subjects
in this new series include: types of
orders, techniques of the trading
floor, spread trading, leverage,
opening an account, and a
historical background.
To get us into the series, we start
with an overview of the com
modities market.
Although commodity futures
trading volume increased
sevenfold in 15 years, the fact is
that most people don’t understand
futures trading. And they’re
naturally apprehensive about
MIKE FISHER & LARRY HERR 687-6801
SPECIAL FARM PRICES FREE ESTIMATES
geiung into a fast-moving market
that can provide big profits—and
biglosses.
This information is designed to
acquaint' the reader with the
concept of futures trading and the'
futures exchange as an institution
by .presenting basic facts on
futures. It will explain what they
are, why they exist, how orders are
executed, and where to get ad
ditional specialized information.
Examples will be drawn from
the Chicago Mercantile Exchange
(C.M.E.), one of the world’s
largest futures exchanges with
several million contracts traded
annually, and from its In
ternational Monetary Market
Division (1.M.M.) and its
Associate Mercantile Market
Division (A.M.M.). The I.M.M. is
the largest public market of its
kind dealing in such financial
instruments a£ foreign currencies,
U.S. Treasury bills, and U.S. silver
coins, and such metals as gold and
copper. The A.M.M. is concerned
with trading in lumber, eggs,
potatoes, milo (yellow sorghum),
butter, and frozen turkeys.
Trading in live cattle, live hogs,
feeder cattle, and frozen pork
bellies (uncured, unsliced slabs of
bacon) and certain other meat
JANUARY SALE ON
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Model L-27 With 4 to 1
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Model L2O, IAVz H.P. Continuous @ 1800
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Model L 27 w/starter, 20 1 /* H.P. con
tinuous at 1800 R.P.M. or 34 H.P.
SAE @2200 R.P.M
Model L4O w/starter, 30 H.P. con
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Model 720 with Rope Start, 17 SAE
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Model 530 with Rope Start, BV2
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2 1 /z miles East of Leola - Along 772 Georgetown on Furnace Road
products is done on the C.M.E.
Individuals and companies buy
and sell contracts for future
delivery of “carloads” or lots of
agricultural products, so-called
because early-day agricultural
contracts specified delivery of
enough of a commodity to fill a
railroad car. All contracts specify
the quantity, delivery period, the
date on which trading terminates,
approved delivery points, and
delivery procedure for each , _ t
commodity traded. With the ex- Next week’s Farming’s Futures
ception of foreign currencies and column will continue our look at
U.S. Treasury bills, quality also is the commodities market,
specified. If y ou * lave questions about
Participants in the futures futures trading, send your
market may be classified into two questions to Farming s Futures,
groups: hedgers, who use the te ,j ta^ a Snf s4^ ewspaper ’
market as an insurance policy; uutz.t'Ai/Mj.
FFA to honor Blair Countians
HARRISBURG - Three Blair
Countians will be honored at the
mid-winter convention of the
Pennsylvania FFA in the Forum
Building Wednesday afternoon.
Mrs. Dawn Baker, Rl, Mar
tinsburg, will receive an honorary
Keystone Fanner Degree as the
mother of a third son to receive the
state’s highest FFA degree.
Jay Baker is among the ap
proximate 320 recipients of this
year’s Keystone Degree. Brothers,
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arid speculators, who use it for the
reason implied by the very term.
Any person who buys an
automobile for future delivery or
pays a yearly subscription for a
magazine acts similarly to a
“buy” hedger by setting a price for
a product to be delivered at some
future time. By the same token, a
salaried worker sells his services
to an employer for a set price, not
at all unlike a “sell” hedger.
Bradley and Brian, received the
degree in 1976 and 1977, respec
tively.
Their father, the late J. Donald
Baker, received the degree in 1956.
Mr. and Mrs. Ralph Glass, of Rl,
Roaring Spring, will 'receive a
special citation for their support of
the Central Cove FFA Chapter.
The couple has presented an award
to the outstanding vo-ag senior in
the Central Cove FFA for the past
several years.
Model 530 Engine
With Binder
Model L-54 Engine With
Cut-ditioner
★ SALE GOOD
JANUARY 1 THRU
JANUARY 30th
10% DOWN WILL
HOLD AT THESE
PRICES FOR IN-,
STALLATION UNTIL
MAY 1 ( 1982
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