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1999 Corn Advice 2005 Wheat and Corn

Recent Advice

MARKET DATA, INC. - 2005 WHEAT AND CORN MARKETING STRATEGIES
   MARKET DATA, INC.
  2005 Potential Marketing Returns vs. Harvest Prices
A. Assumes a 1,000.0  acre dryland farm with a 1/3 - 1/3 - 1/3 crop rotation and signed up for two commodities - cost of $500.00.
B. WHEAT REVIEW: as of 11-11-2005
1. Total Acres of 333.3 with a yield of 40.00  bushel for a 13,333.3  bushel crop.
2. Assumes a 70.00%  CRC or RA+ 38.00  APH for 8,866.7  insurance bushels.
3. Assumes a 600.0 acre Base and 34.00  bushel yield 17,340.0  bushel covered by CCP.
4. Assumes a $2.65  per bushel loan rate and a cash basis of a  -$0.40  a bushel.
   
5. January 31, 05 Monthly News  $3.60 30.00%  of the crop at $3.20  or bushels of 4,000.0 $12,800.00
6. March 10, 2005 Greg's Gossip said to price $3.70 10.00%  of the crop at $3.30  or bushels of 1,333.3 $4,400.00
7. March 10, 2005 Greg's Gossip said to price $3.80 0.00%  of the crop at $3.40  or bushels of 0.0 $0.00
(The $3.80 target was not reached - high was $3.74 on SEP K.C. but we were targeting 10% more at this price)
 
8. Sept. 1, 2005 Gossip - DEC $3.70 10.00%  of the crop at $3.30  or bushels of 1,333.3 $4,400.00
(Less: Cost of holding to 9-29) -$0.12 10.00%  of the crop at -$0.12  or bushels of 1,333.3 -$160.00
9. Sept. 15, 2005 Gossip - DEC $3.90 40.00%  of the crop at $3.50  or bushels of 5,333.3 $18,666.67
(Less: Cost to hold to 10-12) -$0.14 40.00%  of the crop at -$0.14  or bushels of 5,333.3 -$746.67
10. Cash Price Available today of $3.72 10.00%  of the crop at $3.32  or bushels of 1,333.3 $4,426.67
(Less: Cost of holding to date) -$0.16 10.00%  of the crop at -$0.16  or bushels of 1,333.3 -$213.33
11. MDI marketing efforts netted a producer an average price of   $3.27 Totals 13,333.3 $43,573.33
12. Less: Using the Harvest price only of $3.52  SEP on 7-1 -$3.12  on all bushels 13,333.3 -$41,600.00
13. Equals Net Gain (-) from following Market Data, Inc. Pre-harvest marketing $0.15  per bushel $1,973.33
14. Assuming a cost per bushel on the MDI service of -$0.019  per bushel -$250.00
(one-half of $500 for two commodities divided by the bushels raised)
15. Equals NET return after the MDI service costs are figured in of $0.129  per bushel $1,723.33
16. Return on investment from MDI service on WHEAT in this review of 689.33%  or a return of 6.89  to 1.00.
17. NOTE:  That the SEP K.C. Wheat futures had a high price of $3.740  on March 15, 2005.
C. CORN REVIEW: as of 11-11-2005
1. Total Acres of 333.3 with a yield of 70.00  bushel for a 23,333.3  bushel crop.
2. Assumes a 70.00%  CRC or RA+ 65.00  APH for 15,166.7  insurance bushels.
3. Assumes a 300.0 acre Base and 50.00  bushel yield 12,750.0  bushel covered by CCP.
4. Assumes a $1.95  per bushel loan rate and a cash basis of a  -$0.25  a bushel.
   
5. January 31, 05 Newsletter $2.50 30.00%  of the crop at $2.25  or bushels of 7,000.0 $15,750.00
6. January 31, 05 Newsletter $2.70 30.00%  of the crop at $2.45  or bushels of 7,000.0 $17,150.00
7. July 14, 2005 Greg's Gossip $0.00 0.00%  of the crop at $2.35  or bushels of 0.0 $0.00
(figured as a $2.70  DEC corn put for a cost of $0.10 $2.35  cash price floor - never hit)  
 
8. July 14, 2005 Greg's Gossip $2.50 10.00%  of the crop at $2.25  for bushels of 2,333.3 $5,250.00
(figured buying $2.60  corn put & Selling $3.10 call $0.10 $2.25  cash price floor - was traded)
9. Balance to be sold at harvest  $1.97 DEC futures + -$0.25 $1.72  on bushels of 7,000.0 $12,040.00
10. LDP available at harvest time on bushels pre-harvest priced was around $0.40  LDP on all of 23,333.3 $9,333.33
11. average price $2.55 Totals 23,333.3 $59,523.33
12. Less: Using the Harvest price on November 1 $1.97  on DEC 05 -$1.72  on all bushels 23,333.3 -$40,133.33
Less: LDP available on all bushels as of November 1 -$0.40  on all bushels 23,333.3 -$9,333.33
Total received at harvest of $2.12
13. Equals Net Gain (-) from following Market Data, Inc. Pre-harvest marketing $0.43  per bushel $10,056.67
14. Assuming a cost per bushel on the MDI service of -$0.011  per bushel -$250.00
(one-half of $500 for two commodities divided by the bushels raised)
15. Equals NET return after the MDI service costs are figured in of $0.420  per bushel $9,806.67
16. Return on investment from CORN in this example of 3922.67%  or a return of 39.23  to 1.00.
17. NOTE:  That DEC Corn futures had a high closing price of $2.700  on July 18, 2005.
D. COMBINED WHEAT AND CORN NET RETURN OF 23.06 to 1.00 or dollars gained of $11,530.00
E. RISK MANAGEMENT REVIEW:
1. Percentage of the WHEAT crop that was pre-harvest priced 50.00%  with the risk of non-production vs. crop insurance that
covered a total percentage of the actual crop 66.50%  for a cushion on the crop insurance bushels 16.50%  .
2. Percentage of the CORN crop that was pre-harvest priced 70.00%  with the risk of non-production vs. crop insurance that
covered a total percentage of the actual crop 65.00%  for a cushion on the crop insurance bushels -5.00%  .