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Disclaimer:
This web page is designed to aid farmers with their marketing and risk
management decisions. The risk of loss in trading futures, options,
forward contracts, and hedge-to-arrive can be substantial and no warranty
is given or implied by the author or any other party. Each farmer must
consider whether such marketing strategies are appropriate for his or her
situation. This web page does not represent the views of Kansas State
University. |
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Estimated RA Harvest Price for Corn1,
& Cotton for States with Sales Closing 3/15 and |
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Cotton 2/28 or 3/15 |
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Daily |
Daily |
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Daily |
Daily |
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Closing |
Closing |
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Closing |
Closing |
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Price |
Price |
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Price |
Price |
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CBOT |
NYBOT |
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CBOT |
NYBOT |
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Dec 04 |
Dec 04 |
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Dec 04 |
Dec 04 |
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Date |
Corn |
Cotton |
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Date |
Corn |
Cotton |
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11/01/04 |
2.0000 |
0.4398 |
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11/15/04 |
2.0250 |
0.4491 |
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11/02/04 |
1.9975 |
0.4515 |
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11/16/04 |
2.0300 |
0.4659 |
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11/03/04 |
1.9900 |
0.4458 |
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11/17/04 |
2.0575 |
0.4714 |
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11/04/04 |
1.9750 |
0.4337 |
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11/18/04 |
2.0400 |
0.4850 |
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11/05/04 |
1.9950 |
0.4336 |
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11/19/04 |
1.9925 |
0.4783 |
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11/08/04 |
1.9800 |
0.4383 |
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11/22/04 |
1.9750 |
0.4878 |
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11/09/04 |
1.9800 |
0.4404 |
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11/23/04 |
1.9800 |
0.4900 |
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11/10/04 |
1.9825 |
0.4365 |
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11/24/04 |
1.9775 |
0.0000 |
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11/11/04 |
1.9725 |
0.4388 |
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11/26/04 |
1.9700 |
0.4840 |
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11/12/04 |
2.0000 |
0.4434 |
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11/29/04 |
1.9325 |
0.4850 |
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11/30/04 |
1.9250 |
0.4865 |
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Avg Harvest |
Corn |
Cotton |
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Price |
$1.989 |
$0.459 |
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Plant Price |
$2.83 |
$0.68 |
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Price Change |
($0.84) |
($0.22) |
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% change |
(-29.72%) |
(-32.50%) |
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Increase in Tirgger Yield1 |
142.3% |
148.1% |
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1 |
In years when prices fall, it requires a smaller yield loss to trigger
revenue insurance claims. For example the trigger yield for a corn
grower with a 132 bushel APH times 70% coverage is 92.4 bushels based on
the planting price of $2.83. Based on today's lower harvest price this
same corn grower will have a claim if yields are below 131.5 bushels or
142.3% of the minimum trigger yield of 92.4 bushels. Corn growers may
calculate their trigger yield by multiplying 142.3% times their APH
times the percent insurance coverage they selected. Any yield below
this level will trigger revenue insurance claims. This does not apply
to MPCI-APH. |
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2 |
RA uses the same Harvest Prices for Soybeans as CRC but November average
for Corn. |
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An Example Kansas RA Corn Claim. A Kansas Corn grower with a 132
bushels APH X 70% coverage X higher of harvest, plant price of $2.83
would have had a revenue guarantee of $261.49. If this grower produced
33 bushels, then based on today's price of $1.99 the revenue to count
would be $65.67 and the indemnity payment would be the difference
between the revenue to count and the revenue guarantee for gross
indemnity payment of $195.82 (before premium deduction). |
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