Market Report

Market

5/18/15  9:43am
Dow -5.14
S&P +.20
Nasdaq +.07

U.S. stocks edged higher this morning, sending the Dow Jones Industrial Average into record territory.

The Dow industrials shortly after the opening bell, surpassing its record close of 18288.63 reached in early March.  Read more from the Wall Street Journal http://www.wsj.com/articles/u-s-stock-futures-edge-lower-1431951610

Deere shed 1.6% in premarket trade Friday, after J.P. Morgan downgraded the company to its lowest underweight rating, citing concerns that the farm-equipment market could remain under pressure for the foreseeable future

Grain Market

5/18/15 9:44am
Corn + 2 ½ @ $3.68
Beans +3 @ $9.56 ¼ 

Corn: USDA planting progress is looking good for corn and the trade is expecting 90% planted which is ahead of schedule traditionally.  With the holiday weekend coming up, many traders look to settle up prior to the weekend, many believe there is simply too much weather risk to hold.  With the positions primarily short, it seems a short covering rally might be a real possibility this week.  This may be an opportunity for producers to lock in a sale on some unsold grain.  Keep one eye on the market as we approach the weekend especially on corn.

Keep in mind as the market moves up, basis can be negatively impacted.  It is possible the basis could adjust downward in the event of a rally.

Beans: USDA planting progress is still ahead of schedule for beans despite rains throughout the Midwest.  The trade is looking for 45% planted this week.  Still early enough in the game we are not likely to see any risk premiums yet.  NOPA Crush report said April crush totaled 150.36 million bushels, coming in above the 147.83 million expectation.

Bird Flu: Time Magazine states Over 33 million birds in 16 states have now been affected by the pathogen

Governor Pete Ricketts ordered a state of emergency Thursday after Nebraska’s Department of Agriculture confirmed the highly contagious H5N2 avian flu virus had infected a second farm.

The declaration opens up emergency funding in the hopes it can help contain the pathogen that now threatens what is, according to local officials, a $1.1 billion poultry industry in Nebraska.  More can be read here http://time.com/3859770/nebraska-bird-flu-state-of-emergency/

Risk Disclosure -The risk of loss in trading commodities can be substantial and past performance is not necessarily indicative of future results. Therefore,

you should carefully consider whether such trading is suitable for you or your organization in light of your financial condition. Any examples given are

strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. Neither the

information, nor any opinion expressed shall be construed as an offer to buy or sell any futures or options on futures contracts

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