Market Report

Markets 9:58am 2/19/15

Corn +5 ¼ @3.89

Beans +10 @ 10.05 ¾ 

This week:

A short week for the trade with a holiday on Monday, traders came back ready to go with Tuesday’s NOPA Crush Report.  Report came in somewhat flat with the exception of reporting a record January.  This and a bump in crude caused some excitement and a nice bump for both corn and beans.  In fact crude closed above resistance which may have indicated crude may head on up, however sellers came in and quickly pounded it back down into the red the next day and made no attempts to rally back….. a “turn around Tuesday” feel on Weds as the markets quickly back tracked, and crude dropped back into the red and the US dollar remained strong.

This morning the overnight session pushed beans into the green and grains in general have been fighting to hold.  Toggling between green and red for the first ½ hour this am, but well into the green by 9:30am.  This volatility may provide some marketing opportunities for us on the upswing, and market order or offers can be a win.  With farmers anxious to sell on a rally, it is likely basis will break,  In other words if the market continues to rally we may see basis slip 5 to 10 cents.  It may be wise to limit some basis risk by simply using a basis contract or our Extended Price program to lock in your basis.

Looking forward:

USDA 2015 Ag Outlook Forum will take center stage today and tomorrow, so look for projections and estimates.  This is what I have seen so far, and the beans surprised me a bit, this may give us some strength in beans today, however bean numbers may come up.

[LSN] **USDA Ag Outlook:  2015 Corn planting projected at 89.0 mln acres vs 2014’s 90.6 mln acres

[LSN] **USDA Ag Outlook:  2015 Soybean planting projected at 83.5 mln acres vs 2014’s 83.7 mln acres

[LSN] **USDA Ag Outlook:  2015 projection for all wheat seeding at 55.5 mln acres down -1.3 mln acres from 2014

[LSN] **USDA Ag Outlook:  all cotton planting for 2015 seen at 9.70 mln acres off 1.3 mln acres from the 2014 crop

[LSN] **USDA Ag Outlook:  Average US corn prices in 15/16 marketing year are seen at $3.50 per bushel, soybean prices to average $9.00/bu

[LSN] **USDA Ag Outlook:  Average US wheat prices in 15/16 marketing year are seen at $5.10 per bushel

We will also be seeing 3 different reports over the next 30-45 days, which may provide some added opportunity to capitalize on a “market reaction.”

Warren Buffet and Deere: 

Warren Buffett’s Berkshire Hathaway recently disclosed in federal filings that they had accumulated over 17 million shares of Deere & Co stock worth over $1.5 billion.

For Fun:

How many licks does it take to get to the center of a Tootsie Roll Tootsie Pop?

Mathematicians at New York University conducted a very important experiment to find out exactly how many licks it takes to get to the center of a Tootsie Pop. Drum roll, please.

One thousand.

For those patient enough to not take a bite, graduate student Jinzi Mac Huang determined it would take 1,000 licks to make it through one centimeter of candy, which is approximately half the length of one Tootsie Pop. The study was done to explore the effects of dissolving materials within a fluid flow, such as rocks in geological environments and pills for pharmaceutical applications. The lollipop angle was just a fun side effect.

Read more here: https://gma.yahoo.com/mathematicians-discover-many-licks-takes-center-tootsie-pop-224356597–abc-news-Recipes.html

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