Market Report

Markets @ 11:31am:

Dow -51.46
S&P -6.98
Nasdaq -28.27

Microsoft Corp. said today it has reached a deal to buy LinkedIn Corp. the professional social-networking company, for $26.2 billion in cash as it pushes to make its products more connected.  Microsoft will pay $196 per LinkedIn share, a 50% premium to LinkedIn’s closing price on Friday.  Shares of LinkedIn, which had dropped 42% so far this year through Friday’s close, jumped 47% to $192.95. Microsoft shares fell 2.7%.

Outside Markets:

US Dollar steady/higher.  Thursday and Friday this week Fed reserve open committee June meeting to be held.

Oil prices fell to their lowest point in 11 days today, a second day of losses connected with another increase in U.S. drilling activity.

Baker Hughes Inc. said late Friday that the number of rigs drilling for oil in the U.S. rose by three in the week ended June 10, the second straight weekly increase. It is reinforcing views that the recent rally may encourage more drilling that keeps oil markets oversupplied.

U.S. oil has lost 4.9% since Wednesday’s settlement, its sharpest pullback by percentage in more than a month. Brent, the international oil benchmark, briefly fell below $50 a barrel for the first time in a week.

Grain Markets @11:33am:

July Corn +10’6 @ $4.33’6
Dec Corn +13’0 @ $4.43’6
July Beans +3’2@ $11.81’4
Nov Beans +8’4 @ $11.71’2

Exports:

U.S. corn export inspections, for the week ended 6/09/19, were impressive at 1.697 MMT (66.8 million bushels), coming in sharply above expectations of  900k-1.1 MMT (35.4-43.3 million bushels).  U.S. soybean exports were disappointing at just 137k tonnes (5.0 million bushels) as they were at the bottom end of market expectations of 100-250k tonnes (3.7-9.2 million bushels).

Informa:

Was released at 10:30am today

Condition:

Corn crop condition rating, 75% good to excellent, vs. 74% LY and 70% is the 5 yr average.

Bean planting progress expected to be 83% vs. 77% LY and the 5 yr average of 77%. IL 72%, IA 88%, Nebraska 73%, MN 99%, IN 86% (93 LY 86% ave), OH 63% (81 LY, 63% ave). Initial bean crop condition rating, 72% good to excellent, vs. 69% LY and 68% is the 5 yr average.

Corn: Extreme heat has the bulls in control giving corn good strength to start the week, as well as price action due to last weeks USDA report.  Heavy overnight volume.

Volume was above the 5 day average, while Open interest was up in new crop December only +3K, July down 32K as the heavy daily liquidation begins and spreading to Sept continues.  Funds sell 12k on the day, current long position is 206k.

Beans: Overnight volume was above the 5 day average while the open interest was higher. Funds buy 13K, their net long position is estimated to be 244K. The record is 260K.

Strategy: Keeping upside open for corn is probably not going to hurt anyone.  This can be done by purchasing a call option, and there is no margin calls associated with that.  Also Corn Dec ’17 Bonus premium gets 20 cents on a $4.50 offer.  Take the 20 cents and add it to one of your sales today in exchange for a ’17 offer.

Weather:

Heavy Rain for the Plains, Midwest to Start the Week: Portions of the Plains and Midwest will see several rounds of thunderstorms early this week due to a slow-moving low pressure system. Some of the thunderstorms may turn severe with damaging wind gusts and large hail being the main threats. Damage to recently planted summer crops is possible. On Monday, thunderstorms are possible from western Kansas and eastern Colorado into western Nebraska, western South Dakota, eastern Wyoming and far southeastern Montana. Again, winds and hail damage are possible throughout.

Greg Mockenhaupt

ProEdge Risk Management Consultant

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

1007 County Road O

Oakland, NE 68045

www.cvacoop.com