As of this morning, Allendale will start 2009 corn hedges. We have orders placed for 35% of expected corn production using the 3 way option strategy. That strategy provides a floor by buying a 420 put, and lessens the upfront cost by selling a 360 put and selling a 540 call. Orders are being placed Market on Open and should be filled at around 10 cents or so. We are taking this action as current prices are fitting right in with our long term research and price outlooks.
As of this morning, Allendale will start 2009 soybean hedges. We have orders placed for 30% of expected corn production using the 3 way option strategy. That strategy provides a floor by buying a 940 put, and lessens the upfront cost by selling a 760 put and selling an 1100 call. Orders are being placed Market on Open and should be filled at around 21 cents or so. We are taking this action as current prices are fitting right in with our long term research and price outlooks.
As of this morning, Allendale will add to its 2009 wheat hedges. We already have 25% of 2009 winter wheat hedged and have placed orders to add 25% more at 580 via the September contract. We are taking this action as current prices are fitting right in with our long term research and price outlooks.
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