Market Report

Markets

4/20/14 @ 9:48am
Dow +226.02
S&P +20.93
Nasdaq +52.82

Markets bounce back after sharp decline last week, as China steps to stimulate its slowing economy.  The second industry-wide cut in two months, China’s central bank on Sunday reduced the amount of cash that banks must hold as reserves in a move to help spur bank lending and combat slowing growth, which could free up additional funds to be loaned by bankers.

Grain Markets

4/20/15 @ 9:46am
May Corn -2 @ 3.77 ¼
May Beans +11 @ 9.80 ¼

A nice rally seen over night, but corn remains capped, while beans have seen a nice bounce, holding near the high of the day.  Planting progress report expected today at 3pm.

Weather: Rain through much of the Midwest over the weekend, with an expected cool down early this week, with below-normal temps over the next 10+ days.

Corn:  Corn remaining very steady at -2, it seems there are very few bearish cards left to play at this point, yet the concern for lower prices remains.  However, just one bullish card played might just give us an opportunity to make a sale.  The same might be said for a weather scare.   A sound strategy for producers looking to empty bins is an extended price strategy (sell the cash/re-own the board).  This allows the producer to empty bins, set basis, but remain open on the futures price.  Thus participating in market movements and participating in a potential rally.

Soybeans: Argument still remains the same, Bulls talking of strong demand, and bears talking of oversupply.  The strong U.S. Dollar is still a variable for exports.  One consideration is that the hedge funds are holding a record short position, a short covering rally may be in the cards, and having offers in place will be key to taking advantage of this opportunity.  I am also a big fan of the Triplex contract for protecting some longer term downside risk on beans.

For Fun:

I received an email from a co-worker this morning illustrating something I have NEVER seen.  It inspired me to learn more about artist Dalton Ghetti’s tiny sculptures carved out of the fragile tips of pencils.  Yeah that right…. A pencil!  From a miniature bust of Elvis Presley wearing shades to tiny hammers and old boots, his work is mind boggling. Check it out in our gallery below, and get ready to be amazed by this unbelievable:

http://www.daltonmghetti.com/shop.asp

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