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| Happy New Year Everyone!!
Was reading the post concerning corn and barley marketing below and wanted to point a few things out.
First, as far as I am aware on RA Barley Crop Insurance Prices, the PROJECTED HARVEST PRICE is determined as follows: You take the average daily close of the Winnipeg 2007 October Barley Futures and multiply that times .02177. This will then get you to dollars per bushel in CAN $. Then you take this price and multiply times the average daily closing price of the SEPTEMBER 2007 CANADIAN CURRENCY FUTURES at the CME. This PROJECTED HARVEST PRICE is supposed to be released by MARCH 2007.
If you went through those calculations today using the last trading days prices for a rough idea, you would come up with $140.4 times .02177 = $3.06/bus CAN$ times 0.8650 = $2.64 US $ per bushel.
Anybody have any input on this??
In addition to this, here in Montana, IMC, or ADM, are currently offering Malt Barley Contracts for $8.00/100#, or $3.84/bushel. Course you have to deal with the delivery dilemma. In order to "spice up" these contracts I feel they should be paying the commercial storage rate beginning at the completion of harvest, but of course farmers would never hold out for that but thats another story.
Looks to me like the ole futures markets in Minny are gonna have to get off their a$# this year and bid for acres. Kind of wont feel bad if my HRW does kill out as it has been sitting under ice for a while now, just gun in feed barley for the open market!!
How high will Malt Barley offers go if people would wait them out this spring??
Buckwheat | |
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Barley Prices in 2007
