It's Time to Protect Feedstuffs

We've been waiting for this opportunity since the end of March 2008. Waiting for the chance to protect the pricing of corn and SBM at a level that a hog and cattle producer can live with in a finishing ration. December corn closed yesterday (9/30)at and $4.874 and March corn at $5.064. This means that corn for the first quarter of 2009, if protected at $5.05 and after cash basis can be purchased at a level of from $4.65 to $4.85. SBM for the month of March closed yesterday at $292.80, the first time under $300 in several months -- just like corn. At that price hogs can be sold on today's futures at a profit, which again is what we've been looking for. An opportunity to price corn and hogs at a profit or better.

My suggestion is that producers take this opportunity seriously and place orders immediately to price from 25% to 50% of all corn and SBM needs for the first quarter of 2009 at these prices available. I would also place orders for 15% to 40% of all corn and SBM needs for the second quarter and further out. Having completed this watch for continued opportunities to purchase or protect at lower prices. The commodity futures markets are on the run because of the sell-off of long positions held by the once-in-favor, and now not so-much-in-favor index funds. Part of the investment banking melt-down. Take advantage of the opportunity. As producers we've been behind the eight ball long enough. It's time to schedule in some profits.