AUDIO COMMENTARY

US dollar strength added some pressure
Getting hedges in place for cattle
Cattle thoughts & chart below*
Risk is that carryout doesn’t fall much as it’s priced in
Biggest corn risk going into the report
Options dirt cheap if you have grain in the bin
Cheap way to protect the corn rally & not sell too early if the rally decides to continue
If your stomach can’t handle a possible drop
How to protect your new crop corn using old crop options
Basis contract on your radar with corn inverse
Buy some insurance for most of you
The funds & farmer are long now which is a risk
SA weather bigger risk than SA numbers
Don’t see this as big wheat report
Be prepared and be proactive
Grain charts below*

Listen to today’s audio below

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CATTLE THOUGHTS

From our partner Lauren at Texas Hedge Risk Management:

We recommend getting hedges in place on cattle, whether that be a floor with options or LRP, or straight future hedges. The funds have an almost record large long position and could be looking to take profits. Feeders (march) hit their second price target of $268.50 area. Above this area, we have a third and final price objective of $273. Based on today's price action we believe that >$270 may not be guaranteed at the moment. April live cattle closed below their technical objective of $197.65.

In other news, imports of Mexican cattle are set to resume in a slow capacity on January 20th.There was also a rumor that hit the market today of a large packing plant closure. While this is just a rumor and most likely not true TODAY, it has been on the radar of many analysts.

There are multiple ways to get your downside protected based on your risk tolerance. We are also looking at rolling up floors on LRP done previously in the marketing year. If there is any way that we can help, give us a call.

You can contact Lauren at (979)587-9252 or Jeremey at (605)295-3100