Market Report

Markets

4/27/15 @ 9.35am
Dow +69.40
S&P +6.68
Nasdaq +23.30

U.S. Stocks opened high again this morning pushing the Nasdaq and S&P yet further into record territory. The Dow rising 51 points. Despite many bears talking of the end of the rally, it continues to trend higher yet. It seems the old bull is not yet ready to die.

Grain Markets

4/27/15 @ 9:36am
Corn-1 ¾ @ 3.62 ¾
Beans +6 ¾ @ 9.76 ½

Weather: Colder weather shifts north as the jet stream lifts northward and warming up the Midwest into the upper 70’s and 80’s. East Hub area starting in the low 70’s today and steadily working up to the 80’s by Friday. First chance of rain comes on Friday evening with only a 20% chance. Also a 50% of thunderstorms on Saturday evening.

Corn: Corn trades down to lows not seen in 6 months, breaking through resistance of $3.75, a low set on March 18th, 2015. The next major support line of $3.60 may be the stopping point for this negativity. It seem planting has been progressing well, and the weather forecast looks promising for planting. As I drive the country side it seems most farmers are progressing nicely in the fields, which should keep a lid on any potential rallies. Planting progress report comes out this afternoon and the trade is looking for close to 25%. Some demand concerns exist with the spreading of the bird flu virus, and some back pedaling from China regarding U.S DDG imports. However, as mentioned last week, the funds are holding a short position, which may provide some upside as a short covering rally. Problem is that we don’t know where this rally starts from……it seems to be headed towards $3.60 and the funds are continuing to add short positions. Any rallies are likely to be cause by a short covering.

Beans: There’s also still some rumblings about the trucker strike in Brazil and more talk of a potential strike in Argentina by the end of the week. Brazilian truckers upheld their strike into the end of last week, but participation continued to wane overall—the number of highway blockages were reduced from 17 to 11 on Friday. The problem is global soy supplies are building and there is continued talk that if weather cooperates, we could see U.S. ending stocks push above 500 million bushels.

For Fun
Summer Jobs!
Tis the summer season as parents of teenagers begin talking about summer jobs. Talks of de-tasseling corn, working construction, making pizzas, and even hiring “close up” folks to paint the house. This is the proving grounds for the real world…..How work ethic is established. These jobs can be tough, but this is motivation for these kids to aspire to become something great. Learn what it means to love what you do, or even HATE IT! But at least feel a sense of accomplishment when finished. To learn a new skill, or why corn needs a tassel removed. But most importantly feel what it’s like to experience the fruits of your labor. To save some money for the car they have been dreaming of, spend a little on their longtime girlfriend of 2 months, and donate some of it to a charity they believe in. This is the experience that makes the boy a man (or the girl a woman).

De-tasseling corn is hot, sweaty, tough work for a teen. My oldest son is ready to go, he wants to make some cash, despite the horror stories he has been told. So here are 5 things students say they love and 5 things students hate:

Love:
1. Looking good! Getting a tan and muscle tone
2. Wildlife
3. Making big bucks, including the bonus at the end!
4. Making friends
5. Learning lifelong values (former de-tassel’rs have stories)

Hate:
1. Mud, corn rash, humidity
2. Wet and cold in the am, hot and humid afternoon
3. Bugs/Aphids (feel like they are on you)
4. Waking up early and wear and tear on body
5. Wet shoes and socks (losing a shoe)
Read in detail here: http://www.agriculture.com/crops/corn/detasseling-5-things-to-love-5-we-hate_136-sl44305

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

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