successful farming®

special issue

6 Option trading

44 Competition heats up

With huge swings in today’s markets, option contracts offer farmers insurance.

On the cOver todd swenson trades amidst the frenzy on the floor of the chicago Board of trade. see story starting on page 6. photograph:

High prices help drive capital and technology into global farming hot spots. 20715coverndd1

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Josh sears

16 Farmer options

50 Multiyear grain sales

Put options add value to uncontracted grain not covered by insurance.

There are advantages to marketing your crop ears in advance with caution.

18 Options’ hidden truths

56 Bull session

Tips from a veteran who uses options and knows the pitfalls farmers face.

Farmer-marketers weigh options, discuss strategies at Marketing Talk meeting.

22 The new basics of basis

Basis risk is greater today, but farmers still can gain market opportunities.

60 Sell according to market temps Measuring market emotion creates a disciplined approach to timing sales.

Our missiOn Successful Farming magazine serves the diverse business, production, and family information needs of families who make farming and ranching their business. Our passion is to help you make money, save time, and grow your satisfaction in the farming business.

30 Technical techniques

72 Stagflation déjà vu

Price charting concepts can be used to make technical marketing decisions.

A future like the 1970s calls for watching expenses very carefully.

34

34 Funds are fundamental

Knowing how they impact markets can help farmers track index and hedge funds.

40 Financing finesse

Ag outlook is good, but input costs and market issues cloud horizon.

50

Mid-nOveMBer 2008 VOL. 106, NO. 11A

Successful Farming (ISSN-0039-4432) is published monthly by Meredith Corporation, 1716 Locust Street, Des Moines, IA 50309-3023, except for two issues in February and March, and no issues in June and July. Periodicals postage paid at Des Moines, Iowa, and additional mailing offices. Successful Farming reserves the right to refuse nonqualified subscriptions. Subscription orders must show farm or ranch connections as owner, operator, or related occupation to subscribe at basic price: one year, $15.95 to U.S. and possessions. Elsewhere, one year $27.95. POSTMASTER: Send address changes to Successful Farming Customer Service, P. O. Box 37466, Boone, IA 50037- 0466. Canada Post Publications Mail Sales Product Agreement No. 40069223. Canadian BN 12348 2887 RT. Canadian Return Address: Successful Farming, 2744 Edna Street, Windsor, Ontario N8Y 1V2. © Copyright Meredith Corporation 2008. All rights reserved. Printed in U.S.A.

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