Market Report

Markets

Dow -70.92
S&P -2.72
NASDAQ -3.92

 

The U.S Stock market opens fairly flat this morning, slipping into the morning.  July has been a rough month for commodities which continue their negative streak this morning.  Copper and Aluminum fall to 6 year lows.

 

Oil opened deep in the red, slipping to levels not seen since March.  Crude’s supply and demand picture looking bearish with China being the second largest oil consumer.  Concerns about the condition of the Chinese economy continues to leave a bearish tone for many investors.

 

Greek share prices plunged today after trading resumed in Athens following a five-week halt.  The Athex Composite earlier today traded as low as about 615, its lowest level in about three years.

 

Grain Markets 9:56am

Corn -2 ¼ @ $3.68 ¼
Dec Corn -2 ½ @ $3.78 ¾
Beans -3/4 @ $9.80
Nov Beans -3 @ $9.37 ¼

 

Weather

Weather this week looks good for crops in the field with temps in the 80’s and a chance of rain each day.

Corn/Beans

It seems the negative direction continues this week.  Primarily concerns of Chinese demand due to economic uncertainty, the continued strength in the U.S Dollar makes South American corn look cheap and potentially hurting U.S Exports, there just doesn’t seem to be a reason to be bullish. In addition, the USDA crop report is coming August 12^th.

Weather news could be a factor, however, the weather across the Midwest continues to be a non-event.

 

Strategy:  For those of you currently holding a corn hedge/HTA we are consistently an opportunity to roll from December to March for about 10-11 cents.  If you are planning to carry some of your corn into January or later, now may be the time to lock in the carry.  (Example $4.50 Dec Hedge, roll to March adds .11 = $4.61)

 

Basis:  As the market pushes down, we may see basis opportunities, with harvest approaching, it is going to be time to start watching basis levels, and setting those pre-harvest.

For Fun:

It’s been a year since our trip to Universal Studios, when we had the opportunity to go to “Springfield” and stop by Duff’s Tavern for a “Duff” beer.  No chance of buying one to go, Orlando and Los Angeles are currently the only place you can go get yourself a bottle of the fictitious beer.  Until now…. there was no discussion of making it commercially available, until recently Fox has decided to begin the venture starting internationally!

Quoted below from The Wall Street Journal

“For decades, real beer sellers from Australia to Germany to Colombia have been trying to capitalize on all this fake marketing by putting real versions of Duff Beer into the market—only to be shut down after hearing from lawyers for “Simpsons” owner 21st Century Fox.

But this week, the media giant is entering the Duff Beer business itself—beginning in Chile, with plans to roll out to more of South America and Europe by early next year.

The company has been consulting with a brewmaster to get the flavor just right, and plans subtle packaging with no obvious nods to the TV show—just an exact replica of the cartoon brew that will play like an inside joke for Simpsons superfans.

As for the domestic market, outside of the “Simpsons” section of Universal’s theme parks in Orlando and Los Angeles, no Duff is available in the U.S., but Fox isn’t ruling it out.

“I think there’s potential to have Duff everywhere in the world,” said Jeffrey Godsick, president of the media company’s consumer products division. (21st Century Fox and Wall Street Journal-owner News Corp were part of the same company until mid-2013.)

The global thirst for Duff is understandable. “The Simpsons” is the longest-running scripted series in television history, and so widely distributed that Fox executives say an episode is airing somewhere in the world, at all times, day or night, 365 days a year.”

You can read the rest here http://www.wsj.com/articles/duff-beer-tries-to-tap-markets-outside-springfield-1436553842

 

 

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