Market Report

Market News

Dow +3.21
S&P -.05
Nasdaq +16.35

Crude remains below $52 a barrel but the US Dollar jumped over 100 again this morning and grain is feeling it. With a lot of short positions in the dollar a short covering rally could potentially push it even higher.

U.S. stocks rose slightly on this morning, continuing to advance after two consecutive weeks of gains. The Dow Jones Industrial Average climbed 32 points, or 0.2%, to 18090 and the S&P 500 index gained 3.4 points, or 0.2%, to 2105.  The Nasdaq Composite rose 22 points, or 0.4%, to 5018, climbing back above 5000 for the first time in nearly three weeks.

Apple Watch: As an Apple fan, the watch has me intrigued, and the release to pre-order was last week.  According to USA Today, Nearly 1 million people placed an order for an Apple Watch on the first day it was available, with most going for the cheapest model, a shopping research firm estimated.

Slice Intelligence said e-receipt data from 9,080 online shoppers indicate 957,000 people in the U.S. pre-ordered the smartwatch on Friday. On average, they ordered more than 1 watch (1.3), spending an average $503.83 a watch. An estimated 62% purchased the less-expensive Sport model.  More including a video here: http://www.usatoday.com/story/tech/2015/04/13/apple-watch-pre-orders-estimate/25696385/

Grain Markets:

Markets 11:18am
Corn -4 @ 3.73
Beans -2 @ 9.49 ½

The market opened this morning with a negative tone, with corn down and beans slightly up but moving quickly into negative territory.  KC Wheat is taking a pounding this morning down 27.  Continued strength in the U.S. Dollar could potentially reduce export demand significantly, especially as other countries’ currencies decline.

Corn: Corn feeling the pressure from wheat, corn trade seems a bit more uncertain lately with lack of news.  The bulls waiting for weather news and the bears talking of a good supply.  The only real news was the last USDA report which recently raised global ending stocks by 3.2 million metric tons.  It’s also a consideration that many farmers still have a substantial amount of crop still in the bin waiting for an opportunity to cash in on a rally.  The funds continue to add short positions driving down corn, however, at some point these shorts will have to cover and cause a short covering rally.  This could be an opportunity for area producers.  Finally, the first USDA planting progress report will be today at 3:00pm.

Beans: Beans may be finding some support from oil this morning, but grain remain soft.  Last week beans fell over .30 and the speculators are short.  The bearish attitude comes from strength in the dollar threatening future exports, meals prices under pressure and crush margins being down.  The market tone on beans remains negative for now.  Many keep an eye on South American harvest with Brazil nearing the end at 85%, and Argentina talking about record yields in areas now 25% harvested.

For Fun:

Dangerous Toys

Jarts Lawn Darts – I remember as a kid chucking these aerodynamic darts with metal tips and watching the soar into the sky trying to put them into the circle on the ground….you know….the one the other team is standing right next to!  As one of my buddy’s notices its coming right at him and dives out of the way laughing at the near miss as the dart “thumps” sticking into the ground 2 feet away.  It’s not like I was a little guy, and my big looping under armed throws were not exactly coordinated, and that dart would fly 30 feet straight up in the air sometimes even landing behind me, come on guys, how high can you get it!  Banned!  What the heck is wrong with people!  I am still alive…..  Looking back what the heck was wrong with us, our parents didn’t seem worried.  But as a parent, I now have visions of dart poked into my kid’s brain because he took a lawn dart to the head and would never dream of buying a set.

Creepy Crawlers – Goo that you put into a small oven to make plastic bugs, basically napalm. Let’s dream up a toy for children, shall we? Let’s start with plastic goop the consistency of syrup and add an electric-powered mold that heats to 300 degrees.  Giving off potentially deadly fumes right at the dining room table!  I loved this thing!  The goop never lasted long enough and the burn blisters hurt, but I knew it was hot, and knew I could burn myself.  Which is key to teaching kids to use some common sense….since everything in this world is not safe.  I actually found one of these things for my kids and we had blast making our own bugs. (The girl’s version – Easy Bake Oven)

Slip N Slide – A 16 foot sheet of plastic with an inflatable stop at the end, turns out larger folks (adults, teens) have a little more momentum and the abrupt stop at the end caused permanent spine injuries for some.  I have found by arching your back you simply sail right over the stop and onto the grass.  You got to plan these things out….I still love our slip n slide.

WARNING – These toys are dangerous, follow all instructions provided by manufacturer and do not try this at home.  The above was done by a trained professional.

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