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 Gregory K. Lohoefener - the founder of Market Data,
Inc. (MDI) - has 6 years of ag lending , 22 years of ag consulting, 23
years of actual farming, and 22 years of grain elevator owner/management
experience. This practical experience was drawn on to prepare a marketing
service that allows for customization of marketing plans to individual
users as well as localization of cash basis and price ratings. Over 2
years went into the development of a software that provides price ratings
to alert users to GOOD
and POOR price opportunities
and the probability of price movement. The service was offered to the
public starting March 1, 1997 and in the past 10 years we have been
within 10% of the high futures price with our GOOD rating and 10% of the
low futures prices with our POOR ratings -
see the Ratings Review. It is our goal to provide our customers
with information and one-on-one assistance to allow them to take advantage
of profitable price opportunities while using good risk management techniques.
Our service includes utilizing all aspects of the Farm Bill including
the counter-cyclical payments (CCP) provisions when applicable. MDI selects 4 to 8 years since 1970 with like world and/or US fundamentals, technicals
and calls these our similar years this allows us to provide more accurate advice vs. just using all historical years.
Some of the assistance included in the service plan on wheat,
corn - milo, soybeans, and livestock are:
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Two hours of call in or sit down assistance for
one commodity that is used to discuss various marketing alternatives
that meet each individual producer's comfort and risk management needs
or assistance in placing futures orders or obtaining cash bids. Added
time is available at an additional cost, if desired.
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Futures Price Check is our latest service addition and it allows for historical analysis of specific futures contracts and within specific dates selected by you. The historical information is used with current futures prices to arrive at potential target prices for the current situation.
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50
Weekly reports and Greg's
Gossip that cover current marketing strategies, target prices,
fundamental market changes or news, a review of New Crop (NC) and
Old Crop (OC) pricing opportunities, basis reviews, comparison of
current prices to historical prices in years similar to the current
market conditions. These also give the GOOD, FAIR, and POOR ratings.
GOOD ratings should be followed to try and get price protection made
or lift long hedge positions such as Calls and POOR ratings may be
opportunities to look at taking Loan Deficiency Payments (LDP) or
Marketing Loan Gains (MLG) or protecting a potential CCP or lifting
short hedge or Puts.
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A computerized
marketing plan that allows for individual costs by crop as
well as fixed costs and profit to be included in arriving at target
prices for each commodity. This ties to a Marketing Monitor that allows a producer to develop specific marketing
strategies and record actual marketing actions taken while being reviewed
for Rules of Risk violations. This also sets up the prices which will trigger e-mail alerts when they are reached.
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Monthly
Newsletters that concentrate on market news that may affect
the grain markets in the next 30 days are also prepared. These also
include our target prices for the next month, examples of marketing
alternatives that may be useful and probabilities or odds of achieving
a certain cash price using our similar years and the last 35 years.
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Livestock
Review This allows producers to enter their own figures to
arrive at breakevens and then combines the cash breakevens with current
futures prices and looks at the probability of hitting and moving
to these price levels. MDI also allows entry of known basis figures
or will calculate a basis based on 5 to 35 year historical information.
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Special reports
and marketing alternatives on such things as updating Target
Prices, Risk Reward Analysis,
CCC-509, LDP alternatives.
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A glossary
is provided that includes terms and abbreviations that may be used
in various aspects of our service.
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The cost of the service is a flat fee per year of
$400 for one commodity plus $100 for each additional
commodity for single users and commercial users (lenders, elevators,
feedlots, etc.) are double this rate. Commodities available are: wheat,
corn/milo, soybeans, and livestock. For most producers this is less
than $.01 a bushel. The service is good for a one-year period
from sign-up. Discounts are available - REGISTER NOW!
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