Cotton

HEDGING: 2019: Aside. Recently, 20% hedged from 74.72 was exited at 62.21. Recently, 10% hedged from 87.75 was exited at 65 cents.

CASH: 2019: 40% sold. All sales based off of Dec futures. 10% sold from 75.82, 10% sold from 76.69, 10% sold at 75, and 10% sold from 80 cents. Sell 10% if Dec 19 trades above 83 cents.

OPTIONS: 2019: On 25%, purchased Dec 74.00 puts and sold 80.00 calls at 1.50 premium to the buy side. Hold.

Milk

HEDGING: 2019: Sep: 25% hedged from 16.50 Oct: 50% hedged, 25% from 16.52 and 25% from near 17.72. Nov: 25% hedged from 16.40. On an additional 25% Nov, hedge on a close below 17.00. Dec: 50% hedged, 25% from 16.28, and 25% from 16.98. Get current if behind.

CASH ALERT: Sep: Forward sold 25% at 17.96. Oct: Forward sold 25% at 17.96. Nov: 25% forward contracted Nov at 17.50. On 25%, sold an average Oct thru Dec at an average price of 18.75. 

OPTIONS: On 25% Nov, sold 18.00 calls at 15 cents. On 25% Dec, sold 17.75 calls at 15 cents.

FEED PURCHASE: 2019: 100% of feed needs purchased. 2020: 75% of all feed needs booked as of 8/29/19. On 25% of 2020 needs, hold purchased Dec 4.50 calls at near 19 cents.

Author

Kelly Rubisch