Look into Futures
By Peter D. Forbes
THOMSON MCKINNON SECURITIES INC.
GRAINS
Grain traders and market drought of ’B3. Analysts are quick
analysts have both been surprised to note that this year’s underlying
by the weakness in recent com and fundamentals are quite different
soybean markets. In the last three than last year’s,
weeks new crop soybeans have Most notably the greatly in
dropped 1.00 and com has dropped creased acreage this year will add
20 cents, despite the fact that we to this year’s grain stocks even
are now entering a critical stage in with average yields. Also the
crop development. unprecedented strength in the U.S.
It is ironic that this time last dollar and deflationary trends in
year grain prices were beginning the general commodity markets is
Glenn gives a true blue account of what Ralston-Purina feeds and better management
techniques can do for dairy herdsmen. He’s been buying Purina-quality feeds from Hess Mills
of South Vintage Road in Paradise since April 1983. After consulting with Hess Mills’ Dairy
Specialists, Glenn changed his own feeding program to include 56% roughage and 44% grain,
totally. Thus, he increased the general nutrition (energy & protein) and bulk roughage for his
cows by adding to their diet ingredients such as Hess’ High Energy 14% (using Hi-0-36 Con
centrate) and good forages and grains. In tune with better management practices, Glenn
watches his herd of 65 cows very carefully and fresh-mixes the grain mix every 4 to 5 days. He
is meticulous about the quality and quantity of the forages he produces on the farm. As a result,
he maintains a herd free from overweight and continues to observe increased milk and but
terfat production. His yields speak for themselves and for the many benefits and sound,
positive results a Purina feeding program has to offer.
i i
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Behind the scenes, Glenn shows Nate how their new
feeding program pays off where it really counts!
F« Complete Satisfaction,
CAU. YOUR
RALSTON-PURINA
DEALER TODAY
(800) 336-0241
their long rally which became the
Jack Hess, of kssMuls k
Glenn Hershey
Kkizers, PA.
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••April 16,1983 17,868 3.7 M 9 57.6
February 10,1964 JB#3 3J 691 5U
April 11,19 M . 18,524 3.8 703 87.7
May 10,1984 18,573 U 707 58.3
** StillSdfllßlhEiMCflllOWlitlSN ‘ . - —.
Would Like You To Meet
painting a very negative picture
for U.S. exports. *
What has been most disturbing
in this recent price drop is that
many small traders, farmers, and
other hedgers have become very
discouraged. Open interest in
soybeans dropped below 400
million bushels last week, with
most of the trading activity con
fined to liquidation and day
trading (buying in the morning,
selling in the evening).
The USDA has recently released
revised Supply & Demand and
Domestic Stocks Reports.
In soybeans 1984-85 ending
stocks are forecast at 225 million
bushels, up 10 million from the
June estimate. This figure reflects
both reduced crush and export
estimates. Soybean meal and
soybean oil ending stocks were
also changed soybean meal
stocks up 70,000 and soybean oil
down 20 million from June. This
CORN SILAGE-40 LBS
HAYLAGE 30 LBS.
* GRAIN MIX-HESS HIGH ENERGY 14%
HI-0-36
SHELLED CORN
COB CORN
DAIRY MINERAL
MOLASSES
AND CRIMPED OATS
DRY COWS
MIXED HAY - FREE CHOICE
HESS’S HEIFER-4 LBS. ,
(SHE IS FED 1) COB CHOP AND 2) D& H CONCENTRATE FOR RAPID, STRONG GROWTH.)
HERD SIZE
65 REGISTERED HOLSTEIN COWS
indicates that the USDA believes
that next year we will still be
crushing primarily for soybean oil
and that soybean meal stocks will
continue to pile up. This should be
very good for livestock feeders
who use this has a protein sup
plement.
In the export area, activity has
been very disappointing in
soybeans. Recent weekly exports
have fallen well below the 10
million bushel per week required
to meet this year’s USDA forecast.
As an example of this slow down in
export trade, Japanese soybean
crushers completed their summer
purchases of soybeans this week.
Due to the very strong dollar and
forecasts for a 2 billion bushel
soybean crop this year, many
foreign importers will “set on their
hands” until cheaper fall supplies
become available.
In com, the USDA revised its
1984-85 ending stocks to 1.173
A young working “partnership", Nate (left) and older
brother, Glenn (right) tend to the stalled heifers on a
pleasant afternoon.
(Milking Cows) FORAGESANDGRAINA refedasa
TOTAL MIXED RATION.
YOUR PURINA DEALER IN PARADISE SINCE 1918!
HSffiUS
PARADISE, PA UNIONVILLE, PA
(717)442-4183 (215)347-2377
Lancaster Farming, Saturday, July 14,1984—A25
billion bushels, down from 1.238
billion in the June report. They
also left unchanged their 1983-84
ending stocks estimate 512
million bushels.
An interesting note in the export
area concerns the resumption
of “prefixation” of com import
levies this week in Europe.
Traders hope that this resumption
will bring European demand for
U.S. com back to more normal
levels. Since prefix levies were
suspended in April, U.S. com
exports to the EEC totaled 185,000
tons compared with 630,000 during
the previous three month period
and one million during the same
period last year. My source for this
information is the Commodity
News Service.
The USDA forecast for 1984-85
wheat ending stocks was put at
1.414 billion bushels as compared
to 1.472 in the June report. Export
(Turn to Page A 29)