Grain Market Report

Markets as of 10/6/14 @ 8:48am

Corn +4 ¾ @ 3.28

Beans +16 @ 9.28 ¼

Plenty of cool weather over the weekend, and freezing temps over a large portion of North Dakota and some of South Dakota leaves us anxious to hear of any crop damage reports.  Most of the Midwest received some rain over night, which could slow down harvest a bit for those anxious to get started.

Corn saw a bit of a rally overnight, this ride to the downside has been pretty steady, and the bears continue to ride this train.  But where is the bottom?  There is a point when any hedger/investor pauses for a moment to reflect.  They may also decide they are not so sure where the market is headed.  This uncertainty is perceived as higher risk,  and can cause these folks to thin that risk, or even sit out for a while.  In short, if the bears decide to hibernate for a while and cover their shorts, we may see some strength come back into the market and find a bottom.  I would not necessarily saying it’s time to go long or to buy anything.  After all, we have a huge crop on the horizon.  It just seems like it’s time to become a bit more conservative.

Beans also saw a rally overnight, and the story is similar to corn.  However the weather concerns for harvest delays are looming.  In South America, factors are the elections in Brazil, and concerns of weather delays.

Keep in mind the USDA report coming this Friday.

Risk Disclosure – The risk of loss in trading commodities can be substantial and past performance is not necessarily indicative of future results.  Therefore, you should carefully consider whether such trading is suitable for you or your organization in light of your financial condition.  Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples.  Neither the information, nor the opinion expressed shall be construed as an offer to buy or sell any futures or options on futures contracts.

Greg Mockenhaupt

ProEdge Risk Management Consultant

P: (402) 685-5613 | C: (402) 380-9855 | Greg.Mockenhaupt@cvacoop.com

1007 County Road O

Oakland, NE 68045

www.cvacoop.com