Switzerland’s UBS says it no longer will finance new coal-fired plants

first_imgSwitzerland’s UBS says it no longer will finance new coal-fired plants FacebookTwitterLinkedInEmailPrint分享S&P Global Market Intelligence ($):UBS Group AG said it will no longer provide project-level finance to new coal-fired power plants around the world, as it outlined tighter rules on funding such transactions.Switzerland-based UBS noted it will only finance existing coal-fired operators — defined as being more than 30% reliant on coal — that have a transition strategy that supports the Paris climate agreement, or transactions that are related to renewable energy.The bank also intends to source 100% of its electricity from renewable sources by 2020.UBS said its carbon-related assets amounted to $2.7 billion in 2018, down from $6.6 billion a year before. Climate-related sustainable investments totaled $87.5 billion, up from $74 billion in 2017.Additionally, UBS disclosed that its total sustainable investment assets and core sustainable investment assets stood at $1.11 trillion and $313 billion, as of Dec. 31, 2018, respectively, representing 35.8% and 10.1% of the banking group’s total invested assets.More ($): UBS further tightens rules on coal financinglast_img read more

Plaintiffs file memo opposing dismissal of Home Depot suit

first_imgPlaintiffs in the Home Depot data breach lawsuit filed a brief last week opposing the company’s motion to dismiss.Counsel representing CUNA, state credit union leagues and credit unions filed the brief as part of their lawsuit seeking recovery and injunctive relief associated with Home Depot’s 2014 data breach that compromised 56 million credit and debit cards.Home Depot filed a motion to dismiss the complaint against it on July 1, arguing the plaintiffs had not adequately alleged concrete injury. Plaintiff’s opposition brief states that plaintiffs had out-of-pocket financial loss from reimbursing their customers for fraud losses stemming from the breach, and reissuing cards in the face of substantial risk of actual and impending harm–injuries plaintiffs’ counsel argue are sufficient to bring this matter before the court.“Plaintiffs’ costs of reimbursing fraud losses were not incurred to mitigate future harm but from a legal duty to redress fraudulent acts that already had occurred,” the brief reads. “As a result, there is no question plaintiffs have standing.”Susan Parisi, CUNA’s chief counsel, said plaintiff’s counsel is optimistic that a ruling on the motion to dismiss will be favorable to the plaintiffs. The case will then proceed to the discovery phase of litigation, where a formal exchange of information will take place. continue reading » 7SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more

LIRR Mobile Tickets Have (Finally) Arrived

first_imgSign up for our COVID-19 newsletter to stay up-to-date on the latest coronavirus news throughout New York Welcome to the 21st century, Long Island Rail Road.The LIRR announced Monday that its mobile ticket app—MTA eTix—has been released system-wide and is now available for download on iPhone and Android smartphones.The free app allows riders to purchase digital tickets on all 11 LIRR branches prior to visiting a station.It also means that Long Islanders equipped with the app will no longer have to race to a ticket booth before catching the train.Riders have a variety of ticket-purchasing options to choose from via the app, including one-way, round-trip and monthly tickets. To get started, users must create an account and link it to a credit or a debit card. After purchasing the ticket, riders can activate the ticket in order for it to be validated by an LIRR employee on board a train. Multiple tickets can be purchased by a single rider using the app.Last month Gov. Andrew Cuomo announced that LIRR e-tickets would be available on all railroad lines by summer’s end. At the time, the technology was only available on the Port Washington branch.Screenshot of the LIRR’s MTA eTix tutorial.“This e-ticket system for the railroads is where the economy is now,” Cuomo said back in July. “You take out your device. You scan it, and you pay for something. That’s how it works, and that’s how it’s going to work on the railroads.”Cuomo also joked how the Metropolitan Transit Authority once used chalkboards to display train times. His point: the slow-churning wheels of the MTA bureaucracy is making progress.“It’s bringing the railroads to the same level of technology as most services, which is an extraordinary upgrade in the case of the MTA,” Cuomo said.LIRR customers who prefer paper tickets won’t have to worry about ticket booths going the way of antenna TVs since the agency will keep ticket machines operational.Along with a full rollout on the LIRR, the app is also now available on all Metro-North branches.last_img read more

Fans angry at United ‘shambles’

first_img Although many fans wanted Moyes out after such a woeful season, the Manchester United Supporters Trust (MUST) believes it was wrong for the story to leak nearly 24 hours before an official announcement was made. “It’s a PR shambles,” said MUST vice-chair Sean Bones. “Manchester United’s history shows they deal with things with class and dignity but that has not been the case here. “The story leaked before David Moyes has been spoken to, and that’s not the Manchester United way. There was no dignity or class in the way they went about it.” Although United fans never called for Moyes’ head during games, it was clear that support for the manager was eroding with each of the 11 league defeats suffered by the club this term. It was therefore no surprise that many chose to hail the news of his sacking when it was announced on the club’s official Twitter feed. Bones feels appointing Moyes was always going to be a gamble considering that the Scot’s only previous experience came managing Everton and Preston. “The appointment of David Moyes was seen by a lot of supporters as a risk,” he said. Moyes’ nine-month reign at Old Trafford came to an end on Tuesday when he was sacked following a meeting at 8am with vice-chairman Ed Woodward at Carrington. The dismissal did not come as a surprise as many national media outlets reported on Monday afternoon that Moyes was to be dismissed. “Moyes wasn’t proven at the very highest level, and Manchester United should be attracting the best and most proven managers in the world.” Ryan Giggs will take charge of the first team on a temporary basis but speculation has already begun about who United want as a long-term successor to Moyes. Most fans appear to want Borussia Dortmund manager Jurgen Klopp, although he is not thought to be high on United’s wanted list. Whoever succeeds Moyes, Bones fears for the future of the club while the Glazer family are in charge. “The problems lie a lot deeper than David Moyes,” he said. “They lie with the Glazers and how they run the club.” Manchester United have been accused of turning themselves into a laughing stock with their handling of David Moyes’ departure. Press Associationlast_img read more

Neymar to miss PSG Cup tie after returning to Brazil

first_imgParis, France | AFP | Paris Saint-Germain will again be without Neymar for their League Cup tie at Strasbourg on Wednesday, the club confirmed.Coach Unai Emery confirmed on Monday that the world’s most expensive player had been allowed to return to his native Brazil to deal with a family matter.Neymar had already missed the 3-1 weekend win against Lille due to suspension, and Emery said on Monday that he hoped the former Barcelona star would be back in “three or four days”. But PSG’s confirmed squad for the last-16 tie in Strasbourg — where they lost 2-1 in the league 10 days ago — was missing Neymar as well as Thiago Silva, Thiago Motta, Adrien Rabiot and Layvin Kurzawa. They have won the League Cup in each of the last four seasons.Amid speculation as to the reasons behind Neymar’s trip home, Brazilian website Globoesporte published social media messages accompanied by photographs which suggest he could have been at the birthday party of his friend’s father and had also visited a dental clinic.On Monday, Neymar published a photo of himself on Twitter with the message: “Focus, strength and faith for the celebration of another day!!”Share on: WhatsApplast_img read more

Shooting Leaves Five Injured in Miami

first_imgFive people were reportedly shot on Thursday afternoon in Miami Gardens.Miami-Dade Fire Rescue airlifted two shooting victims from that scene to Jackson Memorial Hospital’s Ryder Trauma Center.Two ambulances also responded to the U-Gas station located at 16701 NW 42 Ave.In addition, another ambulance responded to a nearby home at 4030 NW 168 Terr.Photo courtesy: WPLG/MiamiMiami Gardens police officers surrounded the corner gas station, which is located near the Palmetto Expressway/State Road 826.Detectives detained seven people in front of a convenience store at 4195 NW 167 St., which is between the gas station and the home.The investigation remains underway, and authorities have not provided any additional information as to what may have led up to the shooting.This is a developing story.last_img read more

Following Fruits and Vegetables from Farm to Your Table

first_imgStrawberries and baby arugula in January. Broccoli rabe and artichokes in July. We want fruits and vegetables in and out of season at our favorite restaurant and on our dining room table.Produce man Charlie Rooney sums it up best: “Consumers want everything, every day.”Charlie Rooney, left, kids with produce broker Frank Monte at the Philadelphia Produce Market.The Sea Bright produce wholesaler (C. Rooney Pro­duce) has not taken a day off since he started the business in the 1980s and isn’t planning one soon. Several nights a week, you can find Rooney spending the overnight hours on a road trip to the modern South Philadelphia Produce Market.Rooney buys produce for 75 customers so the fruits and vegetables they serve their diners are of the highest quality and freshness.“We arrive at the market around 8 p.m.,” says Rooney, “and it takes about five hours to assemble and stage the orders at one of the 100 bays. Then the hundreds of individual boxes, crates and trays have to be carefully loaded onto the 24-foot straight truck – like a complicated puzzle – in the exact way they will be unloaded for my customers in the hours ahead.”Rooney has his business philosophy on his truck’s sides and roll-up door: Big Enough To Serve, Small Enough To Care.“I live it,” he smiles.He has kept his customer base manageable and in relatively close proximity so that he can assure them when they open for business their order has been delivered and placed in storage in the manner they have specified.“It’s truly personal service,” emphasizes Rooney, who uses two vehicles to deliver when he returns to Mon­mouth County. His team does not finish up until about 10 a.m. – some 16 hours after the trip began. And, they repeat it up to two more times each week – week in, week out.From left, Brandon Gebhardt, Charlie Rooney and Eddie Giron fuel up for the trip to the produce market.The route vegetables and fruits take from farm to plate is a long one but surprisingly quick. Domestic fresh produce leaves farms in the South and West in the winter and nationwide in the summer to arrive at regional produce markets (New York City, Boston, Dallas, Miami, Chicago, and the like) in the middle and end of each week. Fruits and vegetables from Central and South America – shipped by air – are timed for similar arrivals during the winter months.In a 24/7 operation, decades-old family-owned “direct receivers” buy and stock produce at these regional facilities. They inventory boxes, crates, trays and bags of everything from raspberries to radishes, apples to artichokes.Many supermarkets have buyers who purchase for multiple stores or by region. Large warehouse stores like Costco, BJ’s and Walmart may bypass the produce markets entirely and deal directly with growers on mega-purchases to be distributed nationally. Restaur­ants, Rooney explains, still establish relationships with local or regional wholesalers who supply their needs daily and weekly.What makes small businesses like Rooney’s unique is how the relationship with customers transcends just business.“I know all my customers on a first-name basis,” he says, “and have dealt with them for years,” as he shakes a large ring with dozens of keys. “These are keys to my customers’ buildings and I deliver to their storerooms during the middle of the night, placing their order where they want it so it is not in the way when they arrive early for their business day.”The path these fresh commodities then take to your table is varied. “I have long-term relationships with the family produce companies,” he says. “I have worked with a Philadelphia broker for decades. He assures I get what I want for my customers at the right price.”Although Rooney has bought direct from the receivers, he and much of his competition now work closely with professional buyers. Rooney met second-generation Philadelphia produce broker Frank Monte nearly 20 years ago and has established a strong business partnership.“Let me explain how it works,” Rooney says as the truck rumbles down I-295 toward the City of Brotherly Love on Monday night. “I call my orders into Monte just before I leave for the market. Frank sources all my orders from one of the two dozen receivers at the center looking not only for the best price but the best quality.” Rooney explains that Monte knows the market and has an eye on what is coming in daily that Rooney regularly buys.When Rooney’s truck arrives at the loading dock, Monte has his orders sourced and instructions (picking tickets) waiting for Rooney’s assistants. Eddie Giron has been with Rooney for 20 years. Brandon Gephardt has been aboard about two years. Both men snooze in the truck cab on the way to the market knowing they have a long night and morning ahead.Driving motorized forklifts, Giron and Gephardt whiz around the market like race car drivers picking up orders. After schmoozing with the night sales staff and Monte, Rooney retreats to the cab of the truck for three hours of sleep. “Not many owners of produce companies are the buyer, the driver and delivery person,” he says. “I need to catch 40 winks to be able to drive back to Monmouth County refreshed and ready to make deliveries.”Rooney emphasizes how important it is to get the truck loaded correctly. “We don’t have time to be looking for two boxes of asparagus on the third stop in New Jersey at 3 a.m. at a customer’s back door. It has to be where we can get it as soon as we stop.”Rooney starts making deliveries soon after he crosses into New Jersey. The strawberries for a customer in Howell need to be where he can put his hands on them a few hours later. A large sub shop chain needs lettuce and tomatoes – and lots of them – as soon as they open for the breakfast crowd. Customers not only get their produce but bills so they know costs immediately allowing them to price and plan accordingly.Sea Bright produce wholesaler Charlie Rooney starts down the long, center aisle at the South Philadelphia Produce Market.The Rooney family arrived in Sea Bright from Jersey City in 1962. Charlie Rooney’s dad, the late Charles Jr., served as a councilman for years and mayor of the town for two terms. His mom Frances has staffed the family hot dog cart on Ocean Avenue since the late 1970s. It had been the summer job growing up for young Rooney and his sister Fran. Mrs. Rooney, now 80, shows no sign of closing the (what is now) Sea Bright institution. “Like my mother Frances, I am a Capricorn,” Rooney says, “and I am a workaholic, a lot like her and will probably be working too into my 80s.”Rooney got into the business by accident. While recovering from a serious knee injury suffered training for a triathlon, he began to sell vegetables from a road stand near the hot dog cart.“I was paying way too much for vegetables from a wholesaler,” he said. With guidance from people in the business, Rooney began to buy his own produce from a wholesale market in Newark. “When fall arrived, I needed to find something to replace the road stand,” he said. The manager of Ichabod’s (now Woody’s) in Sea Bright asked Rooney to supply him with the juice oranges he used for his famous screwdriver cocktail. Rooney found a supplier, made the sale and as he quips, “one customer led to two, three four and the rest is history.”In 1996 Rooney and his wife Marisol purchased a small deli opposite The Grove on Broad Street in Shrews­bury. They renamed it Stroker’s. Today, the small deli has a huge following for quality breakfast and lunch fare. And yes, Rooney keeps his wife well supplied with produce.Rooney feels he is one of a dying breed of family-owned produce wholesalers. “Today, everyone wants to be bigger,” he says. “My philosophy is to stay the right size to serve my customers’ different needs. I want them to succeed and prosper and if they do well, I too will do well. It’s a win-win situation.”“It’s a demanding business but I love it,” says Rooney heading for home for some needed sleep. He’d have it no other way.Feature writer Art Petro­semolo spent an overnight with Rooney and crew jammed into the cab of his truck. He walked wide-eyed through the Philadelphia Market and came away (along with a huge tray of fresh strawberries) with a new respect for how his vegetables arrive on his plate each day. By Art PetrosemoloSea Bright’s Charlie Rooney is ‘The Produce Man’last_img read more

Gluck backstops Rebels to 1-0 shutout of Leafs, Bruins surprise defending KIJHL champs at home

first_imgThe two 2012 Murdoch Division Finalists once again assumed similar spots atop the standings following opening week in the Kootenay International Junior Hockey League.The Beaver Valley Nitehawks and Castlegar Rebels completed the weekend each with three points.However, both teams took different routes to the top of the standings.Castlegar rode the 28-save performance of Jordan Gluck to shutout the visiting Nelson Leafs 1-0 Saturday in the Sunflower City.Meanwhile, the Hawks, after pounding the Grand Forks Border Bruins 5-0 Friday in the Boundary City, saw the Bears rise up Saturday to steal a 3-2 overtime win in Fruitvale.Chris Osellame scored a power play marker three minutes into the first overtime period to give the Bruins the win on opening week.Last season Grand Forks took weeks to taste victory.Gluck shines in front of home crowd Jordan Gluck looked to be in midseason form as the Scarsdale, NY, native foiled the Leafs everytime the Green and White made a threat to the net.Gluck’s heroics allowed Quinn Klimchuk to score the game’s only goal midway through the third period.Nelson out shot the Rebels 28-23 in the game.Cody Boeckman took the loss in goal for Nelson.Better start already for BruinsAfter finishing last season with one win in 51 games and only four points the Grand Forks are already on pace to destroy those numbers.Trailing 2-1 late in the game, Kublai Barlas tied the game before Osellame sent the home Beaver Valley crowd home disappointed with the overtime winner.Robert Dunsmir kept the visitors in the game stopping 44 of 46 shots as the Hawks peppered the Grand Forks netminder for most of the game.Friday Beaver Valley looked every bit like the defending KIJHL champs as the Hawks shutout the Bruins in Grand Forks.last_img read more

President Zuma plays his part for education in the Eastern Cape

first_imgJohannesburg, Saturday 5 October 2013 – President Jacob Zuma played his part in supporting education in the Eastern Cape when he handed over the Ethridge Junior Secondary School to the community in Mbizana earlier today. This comes on the day that the world commemorates World Teacher’s Day.Speaking in the Eastern Cape, President Zuma described the noble role of teachers as one where they hold “the future of our country in your hands. The children you mould should be able to lead this country forward to prosperity.”Brand South Africa CEO Miller Matola, welcoming President Zuma’s commitment to quality education, said “The building of this school by Anglo American Platinum, supported by the Department of Mineral Resources is a further example of a nation committed to the long term development of its people. Education is one of the greatest enablers of development and a nation’s competitiveness.”“It is a further example of South Africa’s commitment to improving competitiveness by investing in infrastructure that contributes to the lives of the people of this country. Schools which will nurture young minds of our country’s future leaders are critical in building the intellectual infrastructure of our society.”“This has even greater significance since we have just hosted the 2013 One Young World Summit in Johannesburg which brought together approximately 1500 young people from over 180 countries around the world,” concluded Mr Matola.This project is evidence of how stakeholders, working together, can make a positive difference to the people of this country, while also putting communities on a path to sustainable development.About Brand South AfricaBrand South Africa is the official marketing agency of South Africa, with a mandate to build the country’s brand reputation, in order to improve its global competitiveness abroad. Its aim is also to build pride and patriotism among South Africans, in order to contribute to social cohesion and nation brand ambassadorship.Further resources from Brand South AfricaMedia are invited to visit http://www.southafrica.info/ for further resources which can be reproduced without any copyright infringement. Kindly attribute to Brand South Africa.For more information or to set up interviews, please contact:Nadia Samie-JacobsPublic Relations DomesticTel: +27 11 712 5007 Mobile: +27 (0)72 777 9399Email: [email protected] www.brandsouthafrica.comEndslast_img read more

Are options the answer?

first_imgShare Facebook Twitter Google + LinkedIn Pinterest The market is unsure if bean tariffs will mean anything. Even if China starts buying all of their beans from South America, the rest of the world could still buy U.S. beans. This week the Brazil bean cash offers skyrocketed off the tariff news, but when the futures came down 50 cents other world buyers started buying U.S. beans, as they were the cheapest globally. This is likely why the markets dipped and then recovered shortly after.Reduced Argentina production is bullish, while U.S. bean stock levels are bearish. It’s still uncertain how many acres U.S. farmers will plant. I expect a roller coaster ride ahead for the bean market.If corn demand continues to stay steady or increase, prices likely will be strong and have upside potential. If demand were to decrease, so will prices. Weather will start to be an issue in three weeks and could help determine if additional acres will be planted from the USDA estimates. Are options the answer?Last year caught many farmers off guard, because it was the first time in a while that average farmers didn’t have an opportunity to sell an average crop at profitable levels. Many farmers are fearing 2018 will be the same. Therefore, some farmers want to consider alternative solutions (like options) to increase their profit potential, but don’t know how. While I don’t think options are a cure all strategy, if used in moderation and as long as farmers understand all of the risks, they can help farmers take advantage of more opportunities and increase flexibility in their marketing plans.For the first time in the last 10 years I had more than 35% of my production tied up in options trades in 2017. But, 2017 was also the first time in 10 years that corn didn’t trade over $4.30 before harvest. Sometimes market conditions force me to consider alternative strategies to maintain profitability for my farm operationGrain marketing with good risk management practices is a very complex process. The best marketing plans need to constantly adapt to market variances. With more flexibility and trade choices (including options), farmers can maximize profit potential. Conditions affecting prices change every year, so marketing plans need to adjust too.Too often farmers have the market strategy “I want to get the most I can.” This “plan” isn’t a plan. It assumes one can predict the top of the market every year, which is impossible. Instead, I prefer setting price goals I’m willing to accept that meet my farm operation’s profitability objectives.Below I’ve provided some examples of different options that I’ve used or considered in the past and the pros/cons of implementing them into my marketing plan. Selling call optionsSelling calls gives the right to someone else to buy my grain from me at a certain price. When selling calls I get a premium regardless of how the trade turns out. If the price at expiration is the same or higher than the strike price of the call, I have to sell grain for the strike price, but I also keep the premium. If the price is below the strike price at expiration, no sale is made, but I get to keep the premium to add to a later trade.Since grain producers ALWAYS have more grain to sell, selling calls is a natural hedge trade for farmers. It doesn’t allow for much upside price potential and provides limited downside protection, but it can be very useful during sideways markets. In the last year selling calls has allowed me to pick up added premium on some of my grain, while prices remained at unprofitable levels. Selling put optionsSelling puts gives away the right to someone else to give me grain at a certain price.This type of trade is extremely risky for grain producers because it places them in a position of potentially being forced to buy grain at higher prices when they always need to be selling their grain. There are few cases where this type of trade by itself would make sense for a grain producer and I think should be avoided. Selling straddle optionsSelling straddles are when I sell both a call and a put at the same strike price and collect both premiums. Generally, this type of trade is most profitable in sustained sideways markets. While I usually avoid selling puts, the one exception is when I sell a call at the same price (i.e. selling a straddle).While I have had considerable success with straddles over the last 16 months, I had never even placed a straddle in the previous 8 years. Back then I couldn’t justify the potential risk of having to buy grain back if the market fell far enough for the potential premium I would get if the market remained stagnant.To sell a straddle, I select a price I think corn will be at on a specific date in the future. If futures prices are at that price on the selected date, I keep the total premium generated from the trade. The further the actual futures price is from the strike price I picked on the last trading day of the straddle, the less premium I collect until it the straddle hits certain price points in either direction. Those points are derived from the strike price and the total amount collected for selling the straddle. From there, I’ll either have to remove a sale (i.e. buy grain back) or make an additional grain sale.In the last year I could justify this trade to myself and my banker because I first sold some grain at levels that were below the cost of production, so not very good sales to begin with. I didn’t think prices would likely go much lower and there was a reasonably high chance prices would go nowhere, or maybe higher. That initial grain sale provided a “security blanket” to place the straddle trade. If I didn’t really want to make a sale in the first place at the price I did, then the straddle would enable me to buy back the grain at lower prices. If I was going to sit with unpriced grain in the bin anyway, why not be willing to make money regardless of what happens. I discussed the trade with my banker prior to placing it, and he could also see the reason why I would do this type of trade on a few bushels.While there are some advantages to straddles, there are some disadvantages. I wouldn’t commit a large percent of my production to this strategy because it first requires selling some bushels at unattractive prices to minimize my risk exposure. That means if the market ultimately rallies significantly, I get to double my sale at better portions because of the sold call portion of the straddle trade, but I still have the unattractive sale that minimized my risk exposure. Even if I wait to make the first sale at an attractive price level then I open myself up to potential downside in the market should the market drop significantly So, straddles have some draw backs and are certainly not a perfect trade.While straddles can be profitable in certain market conditions, I need to be very cautious when placing them. Following are some best practices that I personally use when placing straddles to limit my risk exposure.I never place a straddle trade without knowing every possible outcome that could happen and be willing to accept any potential scenario.I almost never buy back either side of the straddle before they are within days of expiring. I have a strategy/plan in place and I was willing to accept all possible scenarios when I initially placed the trade, so changing in the middle could affect my profits and the outcome of other trades I have built around them.Since these types of trades are generally more profitable in a sideways market, I go into the mindset of each trade hoping I made the wrong choice and prices go up, so I can sell more grain at higher prices.I always have a sale already in place to protect me from the market dropping and having to reown some of my grain. This is why in the past I haven’t put straddle trades on because I don’t want to buy back profitable sales. Straddles, to this point, have only been a strategy I have used when prices were below the cost of production. Buying putsBuying puts means buying the right to sell grain at a specific price. I’m usually not a fan unless the strike price, less the cost of the put, is still above my breakeven costs. Even then it usually makes more sense to me to just sell the futures outright and guarantee my profit instead of hoping for higher futures prices.For example, let’s say I buy a $4 put for 20 cents. This would mean my true floor price is $3.80. If my production cost is $4.20, then this trade guarantees I won’t be breaking even unless corn trades above $4.40. So, why even buy the put in the first place? I could just sell corn if it is anywhere above $4.20 and guarantee I’m going to have a profit.Now, some would suggest rolling the puts up in a rally and back down in a decline to minimize this issue and add profits to the trade. But that adds costs on rallies, making break evens higher. Plus, if the market drops and farmers roll down the puts, it exposes farmers to more downside loss potential too. In theory these trades can be successful, but in sideways markets they tend to miss opportunity or lose money. Buying puts worked best during extreme volatility like 2010, 2011 and 2012. Over the past five years buying puts has provided a producer a floor price, but that doesn’t mean that the farmer was still profitable with the trade. Buying callsBuying calls means buying the right to buy grain at a specified price. I’ve never been a fan. Whenever I’ve done the math on buying call options, I find they are rarely, if ever, profitable for me. For buying calls to be profitable, it requires a lot of market movement to the upside. The thing is, I ALWAYS need the market to go higher for any unpriced grain I have left for this year or the next year’s crop, so I don’t need to double down on what I need the market to do anyway. This type of trade is too speculative for me when I’m trying to limit my risk exposure.There are some who like to sell futures and buy calls. This is really just buying a synthetic put option, which I just described above.Buying calls tends to sound best to those fearing they will miss out on a big futures rally. This type of trade is basically betting on a long shot. Yes, it has occasionally worked well like 2010, 2011 and 2012, but since 2013 it likely hasn’t been profitable. What about options in the bean market?I usually just focus my option strategy on the corn market and not beans, for the following reasons:Beans have a lot of market volatility and uncertainty with South America growing 60% of the world’s beans. This means potentially two or three weather scares per year that can dramatically affect the market. Comparatively, about 75% of the world’s corn is grown in the northern hemisphere once per year (which greatly reduces market volatility potential).Buying bean options, puts or calls, usually involves a large upfront fee. If I’m already profitable, I don’t see a reason to risk taking a loss hoping for better values. If the market does nothing but go down after buying the option I’m going to miss some opportunity as well.Selling bean call options exposes me to huge price swings and doesn’t allow for me to sell if the market does rally even if I think the market is likely to fall down the road. Which means I don’t get much coverage to the downside.I probably would rather buy beans options over selling them. The reason is because each crop trades differently. What works for corn doesn’t usually work for beans and vice versa. It’s incredibly hard to predict bean market movements and selling option strategies are usually less effective because of market inverses, while the initial upfront cost to purchase them can be a deterrent.I also tend to use my bean crop as a hedge against my corn crop. If I can sell my beans for a guaranteed profit then all I have to worry about is weather my corn will make money. I want to know exactly where I am with my beans instead of wondering or hoping. A balanced approachI strive for a balanced marketing strategy that takes into consideration the market could go up, down or sideways. I want to take advantage of all opportunities available regardless of where the market goes, because it doesn’t always go up. I don’t fear missing out on a rally, because hitting the top isn’t my marketing goal. The fear of striking out and losses motivates me more than the thrill of hitting the very top of the market. I want to be in the upper end of the market trading range, but I need my farm operation to consistently be profitable and I’ll consider any opportunity that allows me to maximize profit potential while minimizing my risk. Using options prudently is one of many ways I can do this. Jon grew up raising corn and soybeans on a farm near Beatrice, NE. Upon graduation from The University of Nebraska in Lincoln, he became a grain merchandiser and has been trading corn, soybeans and other grains for the last 18 years, building relationships with end-users in the process. After successfully marketing his father’s grain and getting his MBA, 10 years ago he started helping farmer clients market their grain based upon his principals of farmer education, reducing risk, understanding storage potential and using basis strategy to maximize individual farm operation profits. A big believer in farmer education of futures trading, Jon writes a weekly commentary to farmers interested in learning more and growing their farm operations.Trading of futures, options, swaps and other derivatives is risky and is not suitable for all persons. All of these investment products are leveraged, and you can lose more than your initial deposit. Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful, and in accordance with applicable laws and regulations in such jurisdiction. The information provided here should not be relied upon as a substitute for independent research before making your investment decisions. Superior Feed Ingredients, LLC is merely providing this information for your general information and the information does not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision. The contents of this communication and any attachments are for informational purposes only and under no circumstances should they be construed as an offer to buy or sell, or a solicitation to buy or sell any future, option, swap or other derivative. The sources for the information and any opinions in this communication are believed to be reliable, but Superior Feed Ingredients, LLC does not warrant or guarantee the accuracy of such information or opinions. Superior Feed Ingredients, LLC and its principals and employees may take positions different from any positions described in this communication. Past results are not necessarily indicative of future results. He can be contacted at [email protected]last_img read more