Market Report

Sept Corn +16 ½ @ $3.89 ¼ 

Dec Corn +16 ¼ @ $4.00

Aug Beans +29 ¼ @$10.38 ¼ 

Nov Beans +23 ¾ @ $9.87

Today’s report will be to the point, as I plan to release more information following the USDA report this Weds.  I will also add you can watch for my blog entry tomorrow on CVA’s blog page.  You can read mine along with weekly entries from our very own grain and agronomy teams.  Found here:http://www.cvacoop.com/blog/

USDA Report: Report is Weds at 11am.  Corn is currently estimated at 166 bushel yield estimate for corn, and 46 for beans.  The trade is expecting to see a bit of a reduction around -1.0 to -1.5 bushels for both corn and beans.  A reduction more than 1.5 bushels would likely provide a bullish response.  Keep in mind the funds continue to remain long despite the downturn in the market.

Corn/Beans Strategy – Consider placing offers pre-report to capitalize on any report volatility.  Something like a $4.25 Dec ’15 Corn, or $4.35 Dec ’16 Corn.  Look at limit up type orders for beans $10.50-$10.60 for Nov ’15 Beans.

Basis – Be looking at basis opportunities, if the board continues to rally, basis may weaken (go down).

For Fun – Everyone that has had lunch with me will hear me order a Diet Pepsi….and when the waitress says “Diet Coke okay?”  I quickly say no thank you, Ice tea please.  I think my manager chuckles each time.  To me they are so different, and this coming from a guy that eats everything……

Pepsico Inc recently announced it is going to change its recipe for Diet Pepsi, to exclude aspartame.  Pointing out public concern over this specific type of artificial sweetener.  They are looking to go to more diet friendly sweeteners such as sucralose and acesulfame potassium.  The new Diet Pepsi will be out next week.  So go stock up on the original if you like it.

You have to listen to your customers, and you have to try it, but….but remember in 1985 when Coca-Cola rolled out New Coke….I remember how bad it was, and switching to Pepsi.  After receiving thousands of complaints Coca-Cola switched back to the classic on just  79 days!  So I guess we will all await “New Diet Pepsi” and see how it goes……

Greg Mockenhaupt

ProEdge Risk Management Consultant

P: (402) 685-5613 | Greg.Mockenhaupt@cvacoop.com

1007 County Road O

Oakland, NE 68045

www.cvacoop.com