Market Report

Markets 9:50am

U.S. stocks are getting hammered again this morning as the Chinese market plunges another -8.5%

Dow -663.16
S&P -66.44
NASDAQ -172.90

Grain Markets 9:51am

Sept Corn +3 @ $3.68 1/4
Dec Corn +3 @ $3.80 ¼
Sept Beans – 7 @ $8.98 ¼
Nov Beans – 8 @ $8.81

Grain markets were hammered overnight on the Chinese news Shanghai index closing down 8.49%, Japans Nikkei is down 4.61%, and the German DAX down 3.73%..  Seeing a rebound at the morning open.  We once again see corn green and the beans red.  Beans taking the brunt of the punishment, now seeing new crop cash prices today with 7 in front early this am.  Closing the overnight down .31 1/4 on beans and -.10 on corn.  The U.S. Dollar index trading down 1.26% and crude down $1.57 at $38.88/barrel.

Weather – The National Weather Service’s outlook for September calls for below-normal temps across the Corn Belt, with above-normal precipitation expected across western Iowa and the Central Plains, including Nebraska. Equal chances of normal, below- and above-normal precip are expected in eastern Iowa to the East Coast. The forecast should increase concerns about crops that are lagging due to late planting.

Corn – Really continues its range bound trade, I have mentioned verbally to many producers that I am not as negative on corn.  It just seems corn wants to stay in the $3.50-$4.00 range.  Though if oil continues it downtrend, this could negatively affect ethanol demand right here in our back yard.   On the bullish side, many including Profarmer think the USDA is overstating yields, and the unseasonably cooler temps in our area have some talking early freeze.

China extends corn buying spree as imports top 1 million tons, China’s corn imports rose for a fourth month to the highest in at least a decade as a slump in U.S. prices made purchases from overseas more attractive.  http://www.agweb.com/article/china-extends-corn-buying-spree-as-imports-top-1-million-tons-blmg/

Beans – Price just continue to fall each week, beans do not seem too afraid to head lower, losing 25 cents last week and another .32 this morning.  Chinese markets provide concerns for U.S. Beans export sales.  We could see a turnaround Tuesday type of event, but longer term I am afraid beans do not offer much for bullish news.

Pro-Farmer – On Friday, Pro Farmer announced its national corn and soybean forecasts after touring the U.S. from Ohio to South Dakota last week. Pro Farmer sees 2015 corn yield at 164.3 bushels per acre compared to the current USDA’s August forecast of 168.8 bushels per acre. Pro Farmer’s soybean forecast was lower than the USDA by .4 bushels per acre at 46.5 bushels per acre. Pro Farmer pegged 2015 corn production 363 bushels below the current USDA projection at 13.323 billion bushels. Soybean production is estimated at 3.887 billion bushels.

For Fun – With Football season just starting, I realize a diet is not in the future, but rather wings and beer.  Who doesn’t love getting together for the occasional game with friends and enjoy the great game of football.  To start off the season here are 10 facts about the NFL you may not know:

1. The New England Patriots were almost named the Bay State Patriots.
2. If you signed up for the Green Bay Packers season ticket waiting list today, you’d have to wait almost 1,000 years to get your tickets.
3. Wilson, which has been the exclusive maker of NFL footballs since 1941, produces 4,000 balls per day, or one for every Eli Manning interception.
4. Only the Green Bay Packers has ever won 3 NFL championships in a row (thus disappointing Pat Riley) and never once in the Super Bowl era.
5. Despite the misnomer that the NFL can only play Sunday, Monday and Thursday, the league has actually played games on every day of the week.
6. The Super Bowl trophy costs $25,000.
7. The oldest record in the NFL record book is one of the most famous: Ernie Nevers scored 40 points in a 1929 game, getting six touchdowns and four extra points.
8. Fred Dryer is the only player with two safeties in one game.
9. The total audience for the first televised football game in 1939 was 500, about 112,200,500 less than watched last year’s Super Bowl.
10. In the modern NFL draft, there’s only been one year in which a quarterback hasn’t been selected in the first two rounds.

Greg Mockenhaupt

ProEdge Risk Management Consultant

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

1007 County Road O

Oakland, NE 68045

www.cvacoop.com