Market Report

Markets 11/16/15 12:02pm

Dow +100.31
S&P +11.42
Nasdaq +10.73

I am sure you heard of the terrible attacks in Paris killing at least 129 people.  After an initial wobble, financial markets mainly shrugged off the effects of Friday’s terrorist attacks in Paris, underscoring how investors increasingly look beyond these type of events, so it seems.

Grain Markets 11/16/15 12:08pm

Dec Corn +0’6 @ $3.59’0
Jan Beans +2’0 @ $8.57’2

With harvest pretty much wrapped up we have little news from the U.S. that can change the markets now.  We know what we have, weather is now not much concern.  Oil continues to grind lower and the US dollar keeps creeping up.  The odds keep stacking against grains.

Corn lower on the open despite good exports, good news and the markets doesn’t seem to care.  Corn has not given us too much excitement by way of headlines and with little change from the USDA the only thing to look forward to is a weather story out of South America or some sort of geopolitical event.  As I mentioned in a text last week the tight trade range has got me nervous.  I suspect we will continue to grind lower (lower highs/lower lows) until we receive some sort of positive news.  I think $3.50 in the cards, possibly breaking through and heading toward $3.40.  I hope we find some support or a headline before we head lower.  I will add if oil prices continue to stay low, it pressures ethanol demand.

Beans the focus is now South American Production and demand from China.  Also hoping for a weather story out of South America to boost our opportunities for a sale.  The strength in the US dollar is going to remain a variable in export sales.

Exports

EXPORTERS SELL 952,500 METRIC TONNES OF CORN FOR DELIVERY TO MEXICO DURING THE 2015/2016 MARKETING YEAR- USDA

EXPORTERS SELL 487,680 METRIC TONNES OF CORN FOR DELIVERY TO MEXICO FOR 2016/2017 DELIVERY- USDA

EXPORTERS SELL 180,000 METRIC TONNES OF SOYBEANS FOR DELIVERY TO CHINA FOR 2015/2016 DELIVERY- USDA

Strategy:  When you opt to sell cash grain, it is always an option to buy a call to participate in upside potential.  This in effect puts in a floor with upside.

For Fun: So you may recall I mentioned previously that Ferrari (Ticker “RACE”) went public.  For the early adopters it hasn’t fared well.  Opening up at $60 a share, now grinding down to a low of $48.83, the luxury car maker has received a $40 price target from Evercore.  None of this means anything to me, and I don’t know any farmers with a Ferrari, but for $40 my two boys might just get a share for Christmas, why?  Well it’s just cool to own Ferrari, that’s why.

Greg Mockenhaupt

ProEdge Risk Management Consultant

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

1007 County Road O

Oakland, NE 68045