Market Report

Dow -15.87 @ 17,630.83
S&P -3.83 @ 2071.32
NASDAQ -9.19 @ 5042.17

According to the Wall Street Journal Sales of newly built homes fell in September, suggesting a highly volatile segment of the housing market could be cooling.  Purchases of new single-family homes fell to a seasonally adjusted rate of 468,000 in September, the Commerce Department said Monday, down 11.5% from August’s downwardly revised rate of 529,000.

Luxury automaker Ferrari went public Wednesday, offering investors a chance to buy shares in the iconic brand and giving Fiat Chrysler Automobiles NV cash to help finance its ambitious five-year growth plan.  Fiat Chrysler on Tuesday priced the initial public offering for its luxury unit Ferrari at $52 a share, currently $55.35 and raising about $900 million ahead of the start of trading on the New York Stock Exchange.  So if you have always wanted to own a Ferrari, this is the next best thing.

Grain Markets @10:16am

Dec Corn +4’0 @ $3.83’6
Nov Beans-5’4@ $8.90’0

Harvest progress numbers out later today.  Harvest looks to be gaining momentum and could be as much as 25-30% ahead of last year pace on corn, and 10-15% ahead of last year’s pace on beans.

Corn
Corn remains very range bound with little news or headlines to cause a shift in prices.  I also consider that all the news out there is primarily great harvest progress and plenty of corn.  That said, any news to the contrary could provide an opportunity to reduce some additional risk.  I continue to remain patient for an opportunity north of $4.00.  Understanding we have not been above $4.00 since early August, there is support around $3.72 and then $3.60 and resistance at $4.00.

Spreads have narrowed on corn, with Dec to Mar at about 8 cents.  Our best opportunities to roll were in early October reaching 11.5 cents and have since diminished.  It is my position to motivate clients to make moves at the appropriate times.  I often share my thoughts with everyone client or not.

Blurb from 10/6/15

Corn: I remain optimistic on corn, with plenty of time for an opportunity to present itself sometime between now and July, storage may be the best plan for now.  If you are short on storage, we can use a buy back strategy.  If you have presold or hedged you could consider rolling to the March capturing .11 to .12 cents and putting additional money on that sale.

Beans
Beans have also have continued to be range bound $8.55 to $9.15.  I am inclined to make some sales when the market bounces above $9.00.  Despite great exports, the market continues to hold in the range.  Another consideration, look how quickly we have lost carry in the beans market.  A couple of weeks ago there was 4-5 cents from Nov to Jan.  Friday was even, and this morning we have went to a 3 cent inverse.  If you need to roll, you may have to go to the March just to keep even on the spread.  However I anticipate that becoming inverted as well in the near future.

Weather

For Fun

With Halloween around the corner, it was always one of my favorite holidays.  I used to go all out to make it great for the kids.  There are now college aged kids that tell me I can remember how scary your house was!  Are you ever going to do it again?

You see, a couple of friends and myself went all out, from 100 ft of cemetary fence, 6 fog machines, full skeletons from the “anatomical chart company.”  I built a lot of special affects using pneumatics, and even a full scale electric chair.  But one day……we had children, and trick or treating became all about them.  The whole “haunt” ended for 13 years!  But with my boys reaching an age where “trick or treating is for little kids” it time to break it all out again!  So this weekend we will see how much of it we can get set up, but one thing is for sure…… full size candy bars.

Greg Mockenhaupt

ProEdge Risk Management Consultant

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

1007 County Road O

Oakland, NE 68045

www.cvacoop.com