Market Report and South Dakota Sights

Markets @10:50am

Dow +27
S&P +2.26
Nasdaq +9.90

U.S. stocks were little changed early Monday following a batch of better-than-expected earnings from companies such as google (jumping 16.3%) and Hasbro (jumping 5.8%).  Investors turned their attention to a stream of corporate earnings reports from several large companies this week.  The Nasdaq ended at a record level on Friday, Gaining 46.96 points, or .9%, to 5210.14.  Googles surge is to blame posting their 3^rd largest daily gain ever.

The U.S. Dollar rose to its highest level as compared to the Euro in nearly 3 months on Friday, likely due to the continued discussion of the feds interests rate hikes later this year.

Gold Hits 5 Year Low

Gold tumbles, hitting 5 year low at the open today after 23 days of steady decline.  Gold likely weighed down by the U.S Dollars continued gains and the continued concern of the first U.S interest rate increase in more than 9 years.  While some analysts believe the down trend is the market taking advantage of low liquidity as opposed to actual fundamentals.

Grain Markets @ 10:51am

Sept Corn -7 ½ @ $4.12 ¾
Dec Corn – 7 ½ @ $4.23 ¾
Aug Beans -6 @ $10.08 ¾
Nov Beans -6 ½ @ $10.00 ¼ 

A weaker start to the open this week due to favorable weather through the Midwest.  Fridays CFTC report showed spec funds long 130k corn, and just over 80k beans, the funds are liquidating some of these positions today causing some market negativity.  Also expecting crop ratings report out this afternoon, not looking to see much of an adjustment.

Corn – With today’s low landing right at the 20 day moving average we are likely to see some support in the $4.21 area for Dec Corn.  The next support line would fall at $4.10.  I will also mention there was a “Gap” at the open, many technical analysts believe there is almost always a gap retracement.  If that holds true we should see ourselves back to at least $4.29 ¼ in the short term.

Beans opened very weak this morning below $10, but have gain back most of what was lost on the overnight by mid-morning.  The story in beans may not play out until August when USDA resurveys Arkansas, Missouri, and Kansas.  The trade believes we may see USDA reduce yield estimates by a few bushels.  Until then it seems Nov Beans will continue to see support at $9.80 and resistance at $10.30 giving us a wide trading range, until we get some news sending us one way or another.

For Fun: Just returning from a vacation in South Dakota, I took the family to see some of the most impressive marvels of nature starting with the Badlands, the Needles, Sylvan Lake, Custer Park and even crystal cave.  Then of course Mt. Rushmore, something that many of us have seen but forget how truly amazing the process of making it was.  All done through private funding, this is not likely ever seem something of this magnitude in our lifetime being built.  Mt. Rushmore cost $989,992.32 to build, taking 14 years to complete, with over 400 workers to complete, there was not one single death.  Despite the fact that I have been there many times, it was the first with my boys.  It was a fun and affordable trip.

That said, there are so many things to do in the midwest over a long weekend, things we easily forget about, its easy to get caught up in the hustle and bustle of everyday life, or fixate only on glamourous trips.  When there are some great things our children have never seen right here in our back yard!  I will add the liesure trip and lack of internet…gives a lot of time to learn about your family, and hold a lot of conversations you may not ave had otherwise.

Top 10 places to go in the Black Hills
http://www.midwestliving.com/blog/travel/top-10-things-to-do-with-kids-the-black-hills/

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