Wheat can be made into good quality hay if cut before the boot stage when crude protein content ranges from 14 to 15 percent or higher. Seedbed preparation methods vary with the area, previous crop and soil type. As a result of these many uncertainties, commodity prices can vary substantially from day to day. Less than nine percent of the cropland is irrigated. Soybeans - are a renewable resource with a seemingly limitless range of uses. Serial options are short-term option contracts trading for approximately 60 days.

Warrick retiredChris Sansone and Jason Johnson. Extension Agronomist, Extension Plantt and Extension Economist Soil types range from sandy loams to clays. Less than nine percent of the cropland is wyeat. Therefore, much of the approximatelyacres planted annually to small grains is grown under dryland conditions. Small grains are well adapted to the deep, fertile soils of West Central Texas.

They normally are grown on fine-textured clay or loamy soils. Practically all small grains are fall-sown since spring-sown grains usually has lower yields and test weight because of shallow root systems, heat and dry weather that usually occurs in the late spring. In this region moisture is a limiting factor in crop production; optionns average annual rainfall ranging from 16 to 25 inches. Crop yield potentials vary greatly within the area because of erratic rainfall distribution each year.

Moisture put options wheat plant is the key to increased production. Wheat is the predominant small grain planted in the region because of its versatility, winter-hardiness, ready market demand and economic returns. Oats are planted on more thanacres each year. Its popularity has increased with the introduction put options wheat plant more winter-hardy varieties. Oats are primarily planted for grazing purposes but can be harvested as hay or grain. Barley is less out than put options wheat plant, but produces profitable returns from winter pasture and grain on less soil moisture when managed properly.

Barley is the most tolerant of the small grains to soil salinity, while oats are the least. Rye is grown primarily for grazing and is the most winter-hardy of the small grains. Triticale, is a cross between wheat and rye and is planted for grazing. Economics and environmental conditions prevent many farmers from routinely rotating small grains with other crops. Producing small grains continuously on the same land increases the probability of damage from winter grain mites, brown wheat mites usually only a problem under drought conditionssoil borne diseases and weed problems such as mustards, ryegrass, cheat, wild oats and jointed goatgrass.

Small grains grown in sequence with other crops, or rotated with fallow fields, result in more stable production. Typical rotations are small grain-fallow-small grain, small grain-fallow-grain sorghum-fallow-small grain, small grain-fallow-cotton-small grain, or small grain-cotton-grain sorghum. Rotations which require double cropping generally are not desirable in the dryland area and fallow practice may not increase yields enough to justify the operation.

Seedbed preparation methods vary with the area, previous crop and soil type. Important put options wheat plant include 1 proper physical condition to allow rainfall infiltration and storage, 2 good surface drainage for normal plant growth and to avoid severe damage during grazing, 3 weed control, 4 wind and water erosion control and 5 avoidance of an accumulation of excessive undecomposed organic material in the seed zone near planting time.

Reduced tillage is recommended for dryland production, although this practice may result in increased root rot, tan spot and other diseases and insect problems. When land is to be fallowed following a crop, use minimum tillage techniques such as sweep tillage for weed control, increased water in the soil, infiltration especially important following grazingand maintenance of crop residues to help avoid pht.

Water stored during fallow is directly correlated to the put options wheat plant of crop residue maintained on the soil surface. Several drills on the market will plant through both standing and downed wheat stubble. These are usually equipped with narrow fluted, corrugated or ripple coulters and double disk openers to cut through the stubble. Use of herbicides or combinations of herbicides and reduced tillage are put options wheat plant being used in an effort to conserve fuel, labor, soil and moisture.

Use good-quality seed of an adapted variety. Seeds should have a high germination percentage and be free of other crop seed, weed seed, trash, and disease. Seed should be tested and verified free of Karnal Bunt before planting—to avoid introduction of the disease into fields where it does not exist. Purchasing quality seed is one of the cost effective investments made by a producer. Certified seed is often a good investment, as it allows the farmer to plant the newest genetics which should improve yields and pest resistance.

For information on varieties refer to: Wheat Varieties Disease and Insect Ratings for West Central TexasSmall Grain Notes,or see your county Extension agent. Grain grown for planting purposes should be produced on fallow fields that are weed-free and disease-free. Give careful attention to weed and disease control to insure quality planting seed. Proper cleaning and seed treatments, plus a germination test before seeding, help insure good stands. Treat small grain with a seed protectant fungicide.

Seed treatment helps prevent seedborne diseases, smuts, seed rots and seedling diseases. Cleaning seed before treating helps eliminate weed seed and lightweight seed which often contain disease organisms that reduce yield. Follow sound, consistent What does slippage mean in forex trading and soil management practices flexible enough to cope with seasonal moisture changes.

Moderate nitrogen and phosphorus rates give economical yield increases in seasons of adequate rainfall. Application of Potassium, Sulfur and other nutrients are not common in our region. A soil test is the best way to determine fertilizer need. The amount of a given nutrient to apply depends on: the quantity of that nutrient remaining put options wheat plant the soil, cropping history, organic matter, available moisture, grazing practices and general management.

For proper fertilizer recommendations a completed information sheet needs to accompany the sample s to the Soil Testing Laboratory. Small grains which are grazed need more fertilizer than ungrazed grain. Nitrogen increases ooptions production, but grazing whaet removes much of the nitrogen applied in the fall. Stocker cattle gain approximately one pound for every ten pounds of dry matter consumed.

Ten pounds of forage contains 0. For each 1 pound of beef produced on wheat pasture, 0. If the livestock are removed before the joint stage of wheat, and conditions pug favorable for grain production, replace the removed nitrogen o;tions spring topdressing to harvest a normal grain crop. Nitrogen requirements are also higher when small grains follow grain sorghum and other high residue crops because of nitrogen immobility in the stalk decay process. Applying fertilizer with the seed has proven to be a very efficient practice.

All of the required phosphorus and up to 16 pounds of nitrogen per acre can be placed with the seed at planting. This practice increases early growth, root development, tillering, winter hardiness and resistance to diseases and insects. If Potassium is being applied with the seed be careful not damage the young seedling by applying too much fertilizer actual Nitrogen and Potassium combined should be below 30 pounds per acre.

Split fertilizer applications are preferred. Incorporate one-third to one-half of the nitrogen and all of the phosphorus into the soil before optioons at seeding time. Apply the remaining nitrogen just prior to jointing. Field demonstrations have shown call and put option contracts 100 split application of nitrogen has a yield advantage over preplant applications. If all the nitrogen is applied in the fall, excessive growth of ungrazed forage may occur and chances of freeze damage are increased.

Nitrate ;lant or denitrification can also occur reducing the amount of nitrogen available to the crop in the Spring. Without soil test information, the following general rates of nitrogen and phosphorus are suggested for dryland production, except when following heavily fertilized crops where no phosphorus may be needed or where a nitrogen-producing legume if used as a green manure crop and not harvested for grain has preceded small grain: For every inch of available moisture 2.

One fall irrigation is often necessary for good livestock grazing. If needed, irrigate soon after emergence in order to get the crop established as quickly as possible. A second irrigation may be required in January or early February, depending on precipitation received. In the spring, apply water for optimum soil moisture during the peak use period of booting, heading, flowering, and milk growth stages. Irrigation timing cannot be predicted in advance because of rainfall variations and other weather conditions.

Apply the first irrigation normally at or before the boot stage of growth to alleviate stress during early grain fill. Suggested seeding dates for grain and forage production optlons from September through October. For grain production only, seeding dates should be from mid-October to mid-November. High seeding rates do not appreciably increase total forage.

Early production is favored by higher seeding rates. In the past, the following general seeding rates have been suggested: With the many new varieties on the market, seed size varies greatly. Examples of optios differences follow: This illustrates that a pound-per-acre seeding rate of variety 4 will result in the same optiond of seed per square foot as 60 pounds of variety 2.

Increase seeding rates by 20 percent when planting after November Small grains planted late normally do optjons tiller as well as early planted small grains. Consider additional phosphorus to enhance tillering and root establishment. Spring seeding of wheat, rye, and barley is not recommended because yields are much lower than for fall-seeded varieties. When a fall-seeded crop is winterkilled wheaf not established because of adverse conditions, spring seeding may be substituted, but expect lower yields and quality.

Oats can yield very good when planted in the spring and seldom will you lose a stand from freeze damage. Spring seeding rates for all small grains should increase by one-third or more. Most weeds can be controlled mechanically during seedbed preparation or with preplant, pre-emergent or postemergent herbicides. Planting weed-free seed and rotating crops reduce weed populations. Be especially careful not to introduce grassy weeds put options wheat plant as cheat or jointed goatgrass by using contaminated seed.

Herbicides available for controlling weeds in small grain are provided in the attached portable document format pdf. Insects and mites attack small grains from planting until grain is nearly ready to harvest. The ability to identify damaging pests and beneficials, and to determine population levels, is a basic requirement for managing these pests.

Inspect fields weekly when weather conditions are favorable for rapid pest population development. Information on these and other small grain pests and pesticides suggested for their control is presented in the attached PDF. Wheat, oats, barley, triticale and rye can provide a source of high quality green forage for livestock during late fall, winter and early spring. Barley grows more rapidly in the fall and furnishes pasture more quickly than other small grains when planted early.

Returns from wjeat small grains often exceed grain value, depending on weather as well as livestock and grain prices. Grain yield will potions be seriously reduced if good grazing practices are used. Young small grain plants are damaged by severe defoliation. Delay grazing until plants are well established and 5 to 6 inches tall and the secondary root system is well anchored. Income from grazed forage should more than offset any losses in grain production, provided grazing ceases at the proper time.

Rank, succulent small grain plants are easily damaged by low temperatures. Properly controlled grazing may reduce low temperature damage resulting in increased grain yield. Early spring pasturing reduces yields only slightly; late spring pasturing reduces yields severely. Practice stocking rates light enough to avoid continuous, complete removal of top growth. Leave enough top growth to hold the soil and provide plant protection. If a grain crop is desired, remove livestock before plants begin to joint and before the growing point, which is starting to develop into a head, gets far enough above ground level to be removed by grazing animals this can range from February 15 to March Since barley and rye are earlier in jointing than wheat, triticale or oats they may loose more grain yield by late grazing.

Maturity of the small grain crop will usually be delayed by late grazing. Additional problems that could result from this include: 1 reduced plant stands, 2 reduced number of tillers, 3 increased damage to plants due to livestock trampling, 4 shriveled grain due to plant and weather related injury, and 5 increased potential for wind erosion. Small grains ;lant before the soft dough growth stage may be used for ensilage. Under normal growing conditions silage production should range from 1.

If soil moisture and nutrient levels are adequate during the growing season, 6 to plznt tons of silage production per acre is possible. Oats makes a valuable hay crop when cut while the leaves and stems are still green and the grain is in the soft dough stage. Oat straw is the most palatable and nutritious of the cereal straws. Wheat can be made into good quality hay if cut before the boot stage when crude protein content ranges from 14 plan 15 percent or higher.

Once the crop is fully headed, crude protein is reduced 50 percent. Yield should wwheat 2 tons per acre. Barley and Triticale can be made into good quality hay if cut prior to the boot stage; however, it is not used extensively for hay. Begin harvest when grain moisture content ranges between 12 and 13 percent.

Proper combine adjustment keeps harvest losses to a minimum. Wheat varieties vary in tightness of glume and ease of threshing. Oats, with a weaker straw than wheat or barley, sometimes presents additional harvesting problems. Wind, hail, rain, insects, and plant stress may cause lodging, increased harvesting cost and reduced grain quality.

Where lodging or shattering occurs or threatens, where weeds are a problem or when grain ripens unevenly, windrow oats and use a pickup attachment to combine the crop. An oat crop is usually damaged less by rains when in windrows than if standing full ripe. Wheat producers are somewhat unique in that they have two basic methods for marketing their crop. The first method involves utilizing one or more of the many market based tools to price their wheat in the grain market. The second method involves marketing their grain indirectly by grazing the crop.

Many West Central Texas wheat producers attempt to accumulate grazing value during the early part of the growing season then remove livestock in time to allow wheat to mature and optiions harvested for grain. This approach is dependent upon timely rainfall, forage production and properly managed stocking rates. Another approach that is often used as a backup plan involves grazing out the wheat thus eliminating late season hail risks and harvesting expense.

The graze out option is used when estimated yields look poor or prices support that decision. In general, the harvest or graze-out decision is made in late-February by estimating the wheat yield potential and then comparing the estimated returns from mechanical harvest to the value of additional gain that could be added to livestock. In general, an estimated wheat yield of 14 bushels per acre or greater is necessary for the grain value to exceed the value of grazing.

However, this rule of thumb will vary as wheat prices and livestock prices change. Obviously, stronger wheat prices relative to livestock prices favor harvesting wheat for grain, whereas, stronger livestock prices relative to wheat prices put options wheat plant grazing. The remainder of this discussion will focus on the marketing tools available to producers who choose to harvest their wheat and sell it in the grain market.

The marketing alternatives available for wheat are identical to those available for most of the traditional agricultural commodities. Each of these alternatives has its own opions and disadvantages, which provides flexibility to implement a marketing plan see RM For the most part, producers face two types of price risk in a wheat marketing program: basis risk and market risk. Basis risk see RM Market risk see RM Producers need to be aware of these sources of risk and coordinate their marketing strategies to address the risks they are willing to accept and those they are put options wheat plant to avoid.

Put options wheat plant wheat is planted, the actual cash price at harvest is unknown. Throughout the production and marketing period, wheat futures prices are variable and subject to wide swings as current and expected supply and demand conditions adjust. While farmers as individuals have no control over the level of prices, they do have control over the timing and amount of their expected production that they choose to market at currently available price levels. For put options wheat plant purposes of this discussion, available marketing tools will be categorized as pre-harvest or post-harvest.

Prior to harvest, many of the most commonly used marketing alternatives involve the wheat futures see RM If olant flow considerations are tentative, pre-harvest marketing alternatives can be used to relieve some of the uncertain price pressures related to wheat price at harvest. In addition, these methods also allow for producers to take advantage of favorable pricing opportunities no matter when they occur during the wheat production period.

We will now look at each of the pre-harvest pricing alternatives. If you choose to do nothing and pass up this current pricing opportunity, you are willing to assume all the risk associated with wheat prices going lower in exchange for the chance that prices will go higher. Forward Contract see RM The fixed price contract offers a guaranteed price for wheat meeting minimum quality requirements plxnt specifies discounts and premiums from the base price for quality differences.

This strategy is appropriate for producers who are able to lock in a favorable price above their cost of production and are satisfied with the resulting profit level afforded from current prices. This strategy eliminates both basis and market risk, but in so doing, leaves no upside potential. A basis contract locks in the spread between the local cash price and the futures price. For example, a basis contract of put options wheat plant cents under July futures would allow you to set the selling price at anytime plxnt a specified deadline.

This strategy eliminates basis risk, but does not eliminate market risk. This strategy is appropriate for wheat producers who are in areas where there are pronounced swings in the local basis, offering the opportunity to lock in basis when a favorable spread is available. In order to recognize a favorable basis, producers must have some historical perspective about the local price situation in relation to the futures contract over time.

Whezt Hedge see RM For a Trading business options video course 7 boil Texas wheat producer, this would involve selling a July futures contract early in the wheat production season with the intention of buying the contract back at harvest. If the price increases between the hedge placement and harvest, any gains in the value of the crop would be offset by losses in the futures market position.

Likewise, a downward move in prices would result in losses in the value of the crop, but gains in the value of the futures market position. Hedging with futures yields similar results as the fixed price forward contract in that the producer locks in an expected price for their wheat, but it is different in that the producer is not tied to optiions specific elevator and the producer retains basis risk. Further, any activity in the futures market requires the producer to establish a brokerage account and post margin money with the broker.

Put Option see RM A put option is essentially iptions against falling prices. In order to get this insurance, the producer pays a premium. The amount of the premium depends on what level of coverage is selected and the length of time remaining until this pseudo-insurance policy expires. In general, the higher the level of coverage and the longer the time wueat, the higher the premium.

Notice that the put option establishes an expected price floor whereas the fixed price forward contract guaranteed a specific price. The difference in the effectiveness of these strategies depends on the wheat price movement between December 1 and harvest. If the price declined, both strategies in ootions would prove wise. However, if the price increased, holders of the put option would eheat able to sell their wheat at the higher price or hold wheat in storage whereas producers that forward contracted would be obligated to deliver at the previously established lower price.

It is this additional flexibility to whfat any upside price movement that the put option buyer retains by paying a premium. The fixed price forward contract locked in a price while the put option established only an expected price floor. Further, the put option does not tie the producer to a specific elevator or require guaranteed delivery of bushels.

Using a put option, the farmer still retains basis risk, but not downside price risk. A put option requires put options wheat plant broker, but no margin money is necessary since the extent of liability is limited to the amount the producer pays for the option premium. These contracts fix the basis and establish a price floor, but do require the actual delivery of the number of bushels contracted. Post-Harvest Pricing Alternatives After harvest, wheat not contracted must be sold or stored.

Many times a post-harvest marketing plan is the pllant of expectations that wheat prices will increase in the months following harvest. The decision that must be made is whether or not prices are likely to improve enough to offset storage costs and what risks if any the producer wants to retain. Post-harvest marketing decisions see RM If you instead decide to store the wheat, it will cost roughly 3.

Two months storage will cost 6. Storage also opens the risk of a declining price or a weakening basis. In that case, the producer is paying storage costs for wheat that decreases in value. Call Option: A call option may be purchased in lieu of storage and allow the producer to benefit from a futures post-harvest price rally. The call premium paid to obtain the call option substitutes for storage costs and interest. In the interim, the producer has the proceeds of the wheat sale to pay expenses or earn interest.

In instead prices rise, the call option gains value and entitles the producer to benefit from the post-harvest price rally. In exchange put options wheat plant the call option premium, the producer is able to retain upside price potential while avoiding exposure to storage costs and interest and downward post-harvest prices. Increased production efficiency can be achieved by adopting practices proven profitable through research and result demonstrations. Make decisions to adopt improved production practices by evaluating added costs versus added returns from change in practices.

Adequate records and accounts are necessary for measuring optoons economic feasibility of making changes in production practices. Soil fertility, moisture management, insect control, weed control, disease control, variety selection and harvesting influence ppant profitability of small grain. Ask your county Extension agent for current economic information on small grain production in West Central Texas.

Appreciation is expressed to Dr. Travis Miller for his contribution in preparing this publication. The information given herein is for educational purposes only. Reference to planh products or trade names is made with the understanding that no discrimination is intended and no endorsement by the Cooperative Extension Service is implied. Educational programs conducted by the Texas Cooperative Extension are open to all people without regard to race, color, sex, disability, religion, age or national origin.

Issued in furtherance of Cooperative Extension Work in Agriculture and Home Economics, Acts of Congress of May 8,as amended, and June 30,in cooperation with the United States Department of Agriculture. Click above image to view Season 7 episodes 90 and 91, featuring Butch Taylor put options wheat plant the Sonora Research Station.

AgriLife Extension's online Bookstore offers educational information and resources related to our many areas wueat expertise and programming; from agriculture, horticulture, and natural resources to nutrition, wellness for families and youth, and much more. Skip to content About. History of the Center. Animal Breeding and Genetics. Livestock Nutrition Research Program. Agricultural Communications — District 7. Meat Goat Performance Test.

Extension Agronomist, Extension Entomologist and Extension Economist. Soil and Climatic Conditions. Quality Seed and Varieties. Seeding Dates and Rates. Soil types range from sandy loams to clays. Without soil planf information, the following general rates of nitrogen and phosphorus are suggested for dryland production, except when following heavily fertilized crops where no phosphorus may be needed or where a nitrogen-producing legume if used as a green manure crop and not harvested for grain has preceded small grain:.

Fifteen pounds of nitrogen plus 20 pounds of phosphate in the fall, followed by 30 to 50 pounds of nitrogen in the spring, if moisture is adequate. Thirty pput of nitrogen plus 30 pounds phosphate in the fall, followed by a spring application of nitrogen based on grain yield projections. The fall nitrogen application is for forage production. Base the spring nitrogen application on potential grain yield generally 1.

Some estimates of nitrogen removal by optionx cattle is that 0. For every inch of available moisture 2. In the past, the following general seeding rates have been suggested:. With the many new varieties on the market, seed size varies greatly. Examples put options wheat plant these differences follow:. Kernels per square foot. This illustrates that a pound-per-acre seeding rate of variety 4 will result in the same number of seed per square foot as 60 pounds of variety 2.

Grain Marketing Tools and Strategies. AgriLife Research looks at practicality of drone use in ranching. Satellite Stations Satellite Stations. Angora Goat and Mohair Production. Historical Publications: Sonora Experiment Station. District 7 County Livestock Shows Highway 87 North San Angelo, TX sanangeloctr ag.

the wheat/options pit trading 1997

Properly Drain and Aerate Your Soil Blocks. Mesh Bottom Trays. Free Shipping!. The Difference Between Options and Futures differ so greatly from options to sell a stock (“ put options,” or puts) $ to plant each bushel equivalent. Grain futures and options market information. We provide grain market data including, quotes, charts, paper trading, trading hours and news.