Market Report

Markets 10:30am
Dow -89.70
S&P -10.30
Nasdaq -20.87
Global stock markets headed lower at the end of a turbulent month that was dominated by concerns over Chinas and the timing of a U.S Interest rate rise. After last week’s big swings across global markets, the Dow finished up 1.1% for the week but was on track for its worst monthly fall since May 2012 on a percentage basis.

Grain Markets 10:31am
Sept Corn -1/4 @ 3.63
Dec Corn-3/4 @ 3.74 ¼
Sept Beans – ¼ @ $8.93
Nov Beans-3 @ $8.82 ½

Month end is upon us, certainly some profit taking to be seen in the markets as funds look to recognize profits for the month.
It’s time to consider your harvest logistics, I am happy to walk through these with you if you have any current sales on. HTA’s we should be looking at setting basis pre-harvest. If elevators begin piling corn on the ground we may see basis slip. If you have storage you might consider rolling your Corn HTA to capitalize on market carry. Corn currently giving 11 cents to roll to the March. Beans are only giving a nickel to January which probably doesn’t justify carrying it. Keep in mind, I am referring to grain sold ahead, not unsold grain.

Weather
We have been experiencing cool temps throughout the Midwest, but that ends today as we move into the upper 80’s and 90’s with chances of Thunderstorms Tuesday and Weds night.

Corn: Corn continues to be range bound and likely to continue this at least until we receive news different from the norm. Looking to see INFORMA later this week, and if USDA finally lowers their yield estimates we could see a bit of a boost. The next major USDA report is September 11th.

Beans: Last week was really important to the future of bean prices. I mentioned to several folks after coming in Monday morning to see beans down .32 we need to see beans get back above $9 and stay there. Unfortunately that did not happen, and it looks as if we have found the new range for beans. I think it’s going to take a good weather (Freeze), or political story to get beans back above $9 for any period of time. Just be ready to capitalize when the opportunity presents itself.

Strategy: At this point my strategy is to focus on harvest logistics. Basis is likely your largest risk moving forward from now into harvest.

For Fun:
Labor Day weekend is approaching, and we will all be likely be taking a short trip, camping, barbequing, and getting caught up on home projects as we enjoy a long weekend. Some interesting facts from the Dept of Labor:

LABOR DAY: WHAT IT MEANS
Labor Day, the first Monday in September, is a creation of the labor movement and is dedicated to the social and economic achievements of American workers. It constitutes a yearly national tribute to the contributions workers have made to the strength, prosperity, and well-being of our country.

LABOR DAY LEGISLATION
Through the years the nation gave increasing emphasis to Labor Day. The first governmental recognition came through municipal ordinances passed during 1885 and 1886. From these, a movement developed to secure state legislation. The first state bill was introduced into the New York legislature, but the first to become law was passed by Oregon on February 21, 1887. During the year four more states — Colorado, Massachusetts, New Jersey, and New York — created the Labor Day holiday by legislative enactment. By the end of the decade Connecticut, Nebraska, and Pennsylvania had followed suit. By 1894, 23 other states had adopted the holiday in honor of workers, and on June 28 of that year, Congress passed an act making the first Monday in September of each year a legal holiday in the District of Columbia and the territories.

FOUNDER OF LABOR DAY

More than 100 years after the first Labor Day observance, there is still some doubt as to who first proposed the holiday for workers.
Some records show that Peter J. McGuire, general secretary of the Brotherhood of Carpenters and Joiners and a cofounder of the American Federation of Labor, was first in suggesting a day to honor those “who from rude nature have delved and carved all the grandeur we behold.”
But Peter McGuire’s place in Labor Day history has not gone unchallenged. Many believe that Matthew Maguire, a machinist, not Peter McGuire, founded the holiday. Recent research seems to support the contention that Matthew Maguire, later the secretary of Local 344 of the International Association of Machinists in Paterson, N.J., proposed the holiday in 1882 while serving as secretary of the Central Labor Union in New York. What is clear is that the Central Labor Union adopted a Labor Day proposal and appointed a committee to plan a demonstration and picnic.

Greg Mockenhaupt
ProEdge Risk Management Consultant
P: (402) 685-5613 | Greg.Mockenhaupt@cvacoop.com

1007 County Road O
Oakland, NE 68045
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