The hardest thing to understand in the world is the income tax. - Albert Einstein

Agriculture

Celebrating over 20 years of client service

"Over the past 20 years, I've worked with individual, corporate & institutional clients at multinational and boutique investment firms. Today, I see a need to help farm businesses protect their grain & livestock revenue, manage their market risk and balance their investments.

I believe that just as farms are implementing cutting edge big data information technology, gaining from advances in crop sciences and using high-precision equipment, farm financial strategies must stay ahead of the curve as well.

I work with farm businesses to help them learn, understand and implement financial strategies that hedge revenue, protect assets and deliver a unique way to look beyond risk to enhance returns.

For a unique solution to your financial situation, connect with me to find out what I can do for you today.”

David Derwin, CIM

Portfolio Manager – Commodities/Equities Investment Advisor

Direct: (204) 982-0011
Cell: (204) 918-2734
Fax: (204) 982-7957
Toll Free: 1-844-982-0011
DDerwin@pifinancial.com

Suite 1520-360 Main St.
Winnipeg, Manitoba R3C 3Z3
Canada

www.Investment-Options.ca
www.Commodity-Options.ca

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Agriculture

C.R.O.P Hedging Program

Precision Farming for your Marketing Plan

 The Commodity Revenue Option Protection (C.R.O.P.) Hedging Program provides systematic commodity option protection strategies that:

  •  Adjust as markets evolve.
  • Balance your production & storage levels.
  • Enhance your sales & marketing activities.

A proactive, real-time, integrated hedging solution delivering farm businesses a unique way to look beyond risk to enhance marketing returns. Learn more...

Our three person team started over 20 years ago on the
Winnipeg Commodity Exchange trading floor.
We work with farm businesses to help them in their marketing decisions, balance risk, and manage price volatility.

We have developed the Commodity Revenue Option Protection (C.R.O.P)
Hedging Program. Systematic option price protection strategies that:

1.adjust as the markets evolve
2. balance your production & storage levels
3. enhance your sales & marketing activities

A proactive, real-time, integrated hedging solution delivering farmers a unique
way to look beyond risk to enhance marketing returns.

 

Market Watch

What is Hedging?

Today we will discuss what hedging is and how you can look at incorporating it in your operation. Defining a hedge requires understanding the two separate, but related markets for farm products: the local cash market and the futures market...continue reading

Click here to view past Market Watch's

 

 

 

 

Presentations

 

Articles

Farm consultants explore network services

Featured in the Western Producer
Lots of farmers have been scrambling to cope with the increasingly complex and unforgiving world of agriculture. They aren’t alone. Some of the expert professionals they turn to for advice have been doing the same, and some feel they’ve fallen behind...continue reading

Farms should increase focus on long-term goals

Featured in the Western Producer 
Many farms are multi-million dollar businesses, but aren't acting like it. It's a situation that can occur when a business, especially a farm, grows based on its success, but the operators don't realize that it has become a complex operation....continue reading 

Click here to view past Articles

 

 

Up Coming Events

FarmTech
Edmonton 
Tuesday January 26th, 2016 
03:30 PM - 04:30 PM 
Room 7 

Wednesday January 27th, 2016 
10:15 AM - 11:15 AM 
Room 7

Crop Connect
Winnipeg
February 10th & 11th
Click here for more information

Canadian International Grains Institute (CIGI)
Winnipeg
February 10th
Click here for more information

Ag Sector Meeting
Neepawa
February 16th
Click here for more information

Managing Risk Through Relationships

We recognize that farming operations need advice on more than just hedging strategies. Below are a few of our trusted
professionals we turn to for their expertise, and you can too...

 

Monthly Ag Technicals & Trends

In March, we saw the dollar break above $0.75 and go to a high of $0.7798 intraday on March 30, 2015.

I was watching the $0.75 level as a resistance (ceiling) level for the dollar to stay under.

Now that it has broken through that $0.75 ceiling, it can now be considered the new support.

How high can the dollar go?

Oil has come off the lows, the US dollar index is declining, and we are coming into a seasonally strong time for the dollar from April-beginning of June (see chart below).

Looking back, the last time the dollar was hovering around $0.77 was in Oct of 2016.

We have started to review taking profit on our dollar hedges for clients and reposition at a lower level.

Canadian Dollar March contract:

New crop canola (Nov futures contract) gained 6% approx. in March coming up from the lows of $450 to the $480 level.

As a result of this move, we have added to our new crop canola protection for those operations that do not have much sold for next year.

We have been using different spread option strategies to reduce the cost AND still give growers all the upside in the price because they aren’t “locking-in” like at the elevator.

Canola November (new crop) contract:

Next, I want to touch on soybeans.

We have been in a $0.50 approx. range from Aug 2015 until now.

This month alone they went from $8.70 to $9.20 on the new crop Nov futures.

Since we are seeing beans at the top end of the range, more weakness may be upon us.

Similar to canola, we have been using strategies to leave the upside open in case there is a confirmed break above $9.20 and the trends may continue higher.

We have put on more new crop soybean protection.

Soybean November (new crop) contract:

Lastly, cattle prices have been under downward pressure since the middle of the month.

We now see both feeder and live cattle futures inching towards their support (floor) levels at $150 and $129 respectively.

For those operations that don’t have any protection on, you can be patient if you want to risk breaking through support.

Many of you now won’t have risk out until Oct/Nov when you sell your animals.

Feeder Cattle April contract:

Live Cattle April contract:

Most notably there was a USDA Production Estimates report today that moved the markets.

Here is a bit of a summary on each commodity:

SOYBEANS: March 1st soybean stocks were pegged at 1.530 billion bushels as compared with trade expectations for 1.557 billion bushels (range of 1.425 to 1.611 billion) and compared with 1.327 billion last year. Soybean planted area was pegged at 82.236 million acres from trade expectations for 83.07 million acres (range of 81.5 to 84.1 million) and compared with 82.65 million last year.

CORN: March 1st corn stocks came in at 7.808 billion bushels as compared with trade expectations for 7.798 billion bushels (range of 7.699-8.100 billion) as compared with 7.750 billion last year. Corn producers planted a whopping 93.6 million acres this year as compared with trade expectations for 89.99 million acres (range of 89.0 to 92.0 million) and compared with 87.999 million last year.

WHEAT: The USDA pegged total wheat plantings this year at 49.6 million acres which is down 9% from last year and well below expectations. March 1st stocks came in at 1.371 billion bushels as compared with trade expectations for 1.354 billion bushels (range of 1.325 to 1.415 billion) and compared with 1.14 billion last year.

Bottom Line: Reports like this can move the markets in either direction on the day they come out. We look at the short/long term trends and make objective decisions to protect your margins.  

PI Financial Corp. is licensed as a broker-dealer in all provinces and territories of Canada and is a member of the IIROC and the Canadian Investor Protection Fund. The contents of our Website are not intended, and should not be construed, as a solicitation of customers or business in any jurisdiction in which we are not registered as a dealer in securities.

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