Market Report

Markets 10:11am

Dow -36.54
S&P -3.83

Nasdaq -5.25

U.S. stocks fell today after Greeks resoundingly rejected creditors conditions for further financial aid, pushing their country closer to bankruptcy and a potential exit from the Eurozone.

Grain Markets @ 10:02am

Sept corn -6 @ $4.22

Dec Corn -6 @ $4.31 ¼

Aug Beans -15 ¾ @ $10.22 ½

Nov Beans -15 ¼ @ $10.15

June 30^th report last week proved the market had been trading higher stock levels, once the USDA showed a reduction in the stock number the market reacted in a VERY positive fashion seeing levels in both corn and beans that we haven’t seen since late Dec ’14.  This rally on top of the strength we were seeing a week and a half prior due to weather concerns, and planting condition.  With the strength we saw, one might think there was a bit of an overreaction and that we may see some pull back, at least in the short term.

The post report rally filled many offers, including the “High Price Offer” strategy I mentioned last Monday making offers just under market limits (New crop corn had a $4.32 limit, and New crop beans at $10.40 limit) both corn and beans hitting those levels the following day.  No one could predict the outcome, but you can definitely prepare for it with offers.

Strategy: I am sure many folks rewarded the rally/gift and made some sort sale.  While the market is up in some fashion, another strategy would be a minimum price contract or floor strategy, this is a less expensive way to protect your downside risk, but keep upside potential.  Look at it as insurance.

Weather: still remains a significant factor, and continues to add upside potential to the grain market.  However, weather is unpredictable and it could just as easily give us some sunshine and a break in the rain.   In this case the market will quickly remove the weather premium, and take back some of the strength we have been able to capitalize on.  As long as the rain keeps coming we are likely to continue to see weather premium.

Last ProEdge meeting is tomorrow at Hooper Fire Hall @ 9am if you are interested in attending

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