Market Report

Market:

A significant sell off on Friday in the stock market as strong jobs data raised expectations for a midyear rate increase.  The Dow industrials fell 1.5% in their biggest one-day loss since late January, while the S&P 500 dropped 1.4%. Last week the US Dollar posted new highs and Crude remained above $50.

This morning, both oil and the US Dollar showing down, while the stock market is bouncing back nicely, on this 6^th anniversary of the Bull market.  The S&P 500 hit a bottom on March 9, 2009 at 676.53, losing more than half its value from the peak in October 2007. In six year since, the S&P 500 has more than tripled.

Market Headline: Apple will be added to the Dow Jones Industrial Average, replacing AT&T on March 19^th.  Year to date AT&T is up 3.2% while Apple is up 70%.  More can be read in today’s Wall Street Journal http://www.wsj.com/articles/apples-ascent-from-niche-stock-to-juggernaut-1425855756 , Apple is expected to unveil its watch today, which is expected to be the hottest wearable technology

Weather:

This week looks to be beautiful.  How could you not come back to work after this weekend feeling recharged from some sunlight and warmth?  Watch out, today is a great day!  This week looks to be 60-70 degrees and sunny every day.  It is not even supposed to freeze overnight.  In addition the time changed on Sunday, so if this morning came a little quicker than normal you know why.

Grain Markets @ 10:32am

May Corn +2 ½ @3.88 ½ 

May Beans +8 ¾ @9.93 ¾ 

Grain:

Markets open stronger, and backing off a bit, but settling in and maintaining a firmer tone.  Lack of news/headlines in grain keeps the market steady to lower, there is just not much in the news to get anyone ready to move.  This might give us some opportunity for a weather story.  A quiet market is looking for something to latch on to.  We also can look to the month end planting intentions report.  It may be a market mover.

With Tax time upon us, and the numbers on your desk, it may be a great time to refigure those break even numbers for your operation.  Knowing the real numbers helps in making your marketing decisions.

Reminder March contracts expire this Friday.

Corn: Last week was negative with a rebound this morning, yet corn continues to stay in its range of 3.85-3.91 refusing to go anywhere.  Bears keep talking about potential export issues due to strength in the US dollar, or slipping ethanol demand as crude remains low.  But the bulls anxiously await a weather story which could include some planting delays.  Corn basis remains strong, and it may be worth looking to limit some of your basis risk on corn in the bin.

Beans: it seems “trucker strikes” remain the top story, but the premium has quickly dissipated as resolution continues.  Fund liquidation has continued to beat down beans.  As with corn the US Dollar strength affects US exports of beans.  Tuesday this week USDA will update supply and demand at 11am.

For Fun:

While doing a real estate search for my father’s property I stumbled across Estately who has a blog about what each state has “more of”….per capita, than any other.  Nebraska having the most high school graduates seems pretty positive when you read some of the other states.  For example Arizona having the most UFO sightings per capita, and Missouri having the most Meth Lab incidents per capita.  Though I close runner up to Nebraska might be a state leading the way in “craft beer production”.”  To read more http://blog.estately.com/

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