AlSUmcaater Farming, Saturday, October 16, 1899
GRAIN, CATTLE, HOG,
& MILK BFP
FUTURES MARKETS
Markets Courtesy Of Chicago Board and Mercantile Exchange
(Closing bids) Thursday, October 14, 1999
Corn
Daily Prices As ofThursday, 14 October
Symbol:C
10/14/99 DEC 99
10/14/99 MAR 00
10/14/99 MAY 00
10/14/99 JUL 00
10/14/99 SEP 00
10/14/99 NOV 00
10/14/99 DEC 00
10/14/99 JAN 01
10/14/99 DEC 01
Total
10/13/99
Soybeans
Daily Prices As ofThursday, 14 October
Symbol:S
10/14/99 NOV 99
10/14/99 JAN 00
10/14/99 MAR 00
10/14/99 MAY 00
10/14/99 JUL 00
10/14/99 AUG 00
10/14/99 SEP 00
10/14/99 NOV 00
Total
10/13/99
Oats
Daily Prices As ofThursday, 14 October
Symbol:o
10/14/99 DEC 99
10/14/99 MAR 00*
10/14/99 MAY 00
10/14/99 JUL 00
10/14/99 SEP 00
10/14/99 DEC 00
Total
10/13/99
Lumber
Daily Prices As ofThursday, 14 October
Date
Nov 99 30610 30610 30610
Jan 00 32770 32770 32770
Mar 00 33200 33450 33200
May 00 33300 33550 33300
JulOO 33310 33310 33310
Sep 00 32910 32910 32910
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
Composite Volume Open_lnt
10/13/99 1249 3954
Top Ten Reasons Why
Farmers Don’t Manage
Risk
10 - There is no free hat
9. I’m waiting for my
neighbor to try it
8. The media created El
Nmo
„ 7 Crop failures build
character
6 It’s more fun to keep my
lender guessing about my ability
to repay
5. I probably deserve a total
crop failure
4 Sleeping too soundly
would make my spouse
wonder .
High
2016
2130
2194
2246
2306
2354
2382
2410
2600
Open
2000
2116
2184
2244
2302
2352
2374
2410
2600
Volume Qpen_lnt
42078 409306
High
4996
5104
5176
5230
5284
5280
5244
5334
Open
4990
5096
5174
5220
5274
5280
5244
5334
Volume Open_lnt
51530 178048
High
1096
1174
1224
1202
1270
1320
Open
1094
1174
1222
1270
1320
Volume Qpen_lnt
385 10785
Open High Low
3. The IRS would take the
profits anyway
2. My children would just
fight over the estate
1. Life would be
without daily doses of fear
In a recent study, 5%
Low
4960
5060
5140
5190
5240
5240
5244
5270
Last
4966
5066
5142
5196
5244
5244
5244
5274
Last
1086
1170
1220
1202
1270
1320
Low
1086
1170
1220
1202
1270
1320
Prev.
Chge
Last
Volume
648
421
171
30610
32770
33450
33550
33310
32910
+lOOO
+ 1000
+lOOO
+lOOO
+lOOO
+ 1000
dull
Lean Hogs
Daily Prices As ofThursday,
Date
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
Chge
Composite Volume Open_lnt
10/13/99 12247 53538
+4
unch
unch
unch
-2
Live Cattle
+2
unch
unch
+4
Daily Prices As ofThursday, 14 October
Date
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
Composite Volume Open_lnt
10/13/99 24210 126517
Chge
-30
-34
-34
-34
-44
-50
-50
-54
Soybean Meal
Daily Prices As of
Symbol: SM
10/14/99 OCT
10/14/99 DEC
10/14/99 JAN
10/14/99 MAR
10/14/99 MAY
10/14/99 JUL
10/14/99 AUG
10/14/99 SEP
10/14/99 OCT
10/14/99 DEC
chge
-4
-4
unch
unch
unch
unch
Total
10/13/99
BFP Milk
Daily Prices As ofThursday,
Date
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
10/14/99
Prev.
Openjnt
2426
1036
372
83
33
Composite Volume
10/13/99 215
farmers are using available tools
to manage the production risk,
credit risk and financial risk of
their business. Why haven t the
remaining 95% signed on? At
least 4 real reasons come to mind.
1) Resistance to change
14 October
High
Open
Oct 99
Dec 99
Feb 00
Apr 00
Jun 00
Jul 00
Aug 00
Oct 00
Dec 00
Open High
Oct 99
Dec 99
Feb 00
Apr 00
Jun 00
Aug 00
Oct 00
7125
6925
6967
7100
6845
6805
6960
7105
6900
6940
7075
6830
6805
6960
- Thursday, 14 October
Volume Open_Xnt
33846 113414
14 October
Open
High
Oct 99
Nov 99
Dec 99
Jan 00
Feb 00
Mar 00
Apr 00
May 00
JunOO
JulOO
Aug 00
1218
1170
1190
1180
1183
1175
1181
Openjnt
4336
Learning about risk
management seems risky itself. It
involves changing the way you
approach decisions and the way
you do business. If you believe
that change is not necessary, risk
management education is not well
received.
2) Too many decisions, not
enough time
The variety of risk
management tools can be a curse.
Good tools used incorrectly or
poorly understood can rum an
operation. Ongoing risk
management education
necessary to stay competitive
3) Old fears die hard
Farmers distrust the futures
market, crop insurance and the
Chge
Last
Low
4717 -10
4740 -17
5160 -10
5380 +lO
6105 +l5
6017 +35
5780 +lO
5465 +lB
5265 +5
Chge
Last
Low
7122
6887
6927
7060
6812
6795
6925
7085
6862
6905
7050
6807
6785
6925
Chge
Last
Low
federal government. Both
industries are working with
educators and farm organizations
to increase understanding.
4) The check is in the mail
The government has been
willing to absorb the production
and price risk in the past through
making disaster payments and
support prices. For the most part,
this has been replaced with
federally susidized crop
insurance.
Private sector alternatives to
the federal programs of the past
must be understood. In today’s
market, the reward for adopting
risk management strategies will
be a chance at profitability and
survival.
Prev.
Open_lnt
4547
27129
11944
5772
2639
991
426
88
Prev.
Volume
1858
6254
2186
978
635
294
37
Prev.
Prev.
Openjnt
8220
64723
25792
16738
5712
2893
2439
Volume
4527
11778
3850
2274
566
79
1136
Last Chga
1544 -13
1561 -8
1569 -8
1586 -8
1585 -8
1604 -7
1610 -7
1615 -10
1623 -9
1649 -13
Prev.
Openjnt
1224
1028
843
427
230
186
147
113
84
31
22
Prev.
Volume
37
90
55
12
12