This document summarizes a presentation on grain and livestock marketing. It covers commodity marketing basics including cash price, futures, and basis. It also discusses fundamental and technical analysis, focusing on factors like weather, supply and demand, exports, and USDA reports. Key international regions are identified and marketing terms are defined. The role of a commodity advisor is outlined along with an agenda for discussing market outlooks.
2. Agenda
• Commodity Marketing Basics
• Fundamental and Technical Analysis
and the major issues that affect each
• World Issues to Watch
• Marketing Terms
• Market Outlook
3. Risk Disclosure
This does constitute a solicitation to buy or sell commodities futures
and/or options. The information contained herein is provided for
informational purposes only. The information is not guaranteed as
to its accuracy or completeness, although the information was taken
from sources we believe to be reliable. The market
recommendations of Loewen and Associates, Inc. are based solely on
the judgment of Loewen and Associates, Inc. personnel. We do not
guarantee or warranty, either expressed or implied, of success to you
in the use of this information. Loewen and Associates, Inc. disclaims
responsibility for or loss associated with use of information from our
commentary, analysis or recommendations. There is risk of loss in
trading commodity futures and options. The risk in trading can be
substantial; therefore only genuine “risk” funds should be used.
6. Futures
• Cash = Futures + Basis
• Cash Corn in Topeka, KS
– $4.40 Cash = $4.45 Futures - $.05 Basis
• What Impacts the Futures Price?
7. Basis
• Cash = Futures + Basis
• Cash Corn in Topeka, KS
– $4.40 Cash = $4.45 Futures - $.05 Basis
• What Impacts the Basis?
– Basis is a local barometer of supply and demand.
8. Fundamental & Technical Analysis
• Fundamentals
– Weather
– Supply and Demand
– Logistics
– Exports
13. Role of a Commodity Advisor
• Works with you to execute your marketing
plan
– Move all grain at harvest or all farm storage
– Where can you ship your grain to?
– How to capture the best overall price
• Futures market pricing then add in basis and
carry into marketing