Market Report and Easter Fun

Markets

3/30/15 10:56am
Dow +258.77
S&P +20.69
Nasdaq +37.67

Kraft Foods and Heinz Merge, Two of the biggest names in packaged foods—Kraft and Heinz—are merging in a deal orchestrated by Warren Buffett and Brazilian private-equity firm 3G Capital Partners L.P., creating one of the world’s largest food and beverage companies.  Heinz shareholders will hold a 51% stake in the combined company, while Kraft shareholders will hold a 49% ownership stake. Kraft shareholders also will receive a special dividend of $16.50 a share, representing 27% of Kraft’s closing price on Tuesday.  More here: http://www.wsj.com/articles/kraft-foods-h-j-heinz-to-merge-1427278332?KEYWORDS=kraft+foods

Grain Markets

3/30/15 10:56am
Corn +2 @ 3.93
Beans +5 ½ @ 9.72 ¾ 

I am sure you have heard the many challenges of getting grain out of Brazil.  An interesting video surfaced from Brazil, of a bus getting consumed by a sink hole, as you can see the roads/infrastructure is simply not there – see the video here: http://www.nbcnews.com/nightly-news/video/sinkhole-swallows-tour-bus-in-brazil-418282563617

Seeing mostly consolidation type trading heading in to the USDA report on Tuesday at 11am.  The Planting intentions report can be a market mover, in which direction remains to be seen.  It may be wise to place a “stretch” offer (higher than normal offer) ahead of the report, in hopes to capitalize on any post report market reactions.

Corn

Traders await tomorrows USDA numbers, will USDA raise or lower their corn planted acreage estimate of 89 million?  Most traders are unsure, and this lack of commitment leaves the market range bound.  Versus the alternative of having the anticipated result “built into the market.”  It is likely any change in USDA’s numbers will cause a shift in the market.

Beans

Similar to corn, awaiting USDA data, USDA currently at 83.7 million.  Seems traders have more of an opinion on beans, thinking USDA may add 2 or 3 million more acres.  This is likely bearish, but we will have to wait and see.  If you are concerned about a drop in bean prices, consider a minimum price/floor strategy.

Wheat

I don’t normally cover wheat, however a lot of talk of wheat prices reaching new highs, possibly even double some say.  Bad crops in Russia, and Ukraine, together with a rising U.S. dollar, could cut inventories further, pushing prices sharply higher.  Wheat currently up .19

For Fun

With Easter just around the corner did you know 70% of Easter candy purchased is chocolate? Though I love chocolate, I think that number is skewed a bit, because we are buying huge chocolate bunnies, and in many cases the chocolate tastes terrible and a portion gets tossed….it’s all about presentation for the Easter basket right?!?  You might also know that 76% of people eat the ears off of the bunny first.

Personally I am about the Jelly Beans, and though my wife thinks I am weird….I like the spice jelly beans.  If you like Jelly Beans as well, here are some interesting fun facts:

1. The origin of jelly beans is kind of a mystery, but they’re thought to be a descendant of Turkish Delight or Jordan Almonds.
2. The modern day jelly bean was promoted to Union Soldiers during the Civil War.
3. To create the hard outer shell of a jelly bean and keep the inside gooey, a process is used called “panning.”
4. In the early 20^thcentury, “jelly bean” was a slang term for a man who put forth great effort to dress stylishly.
5. Jelly beans became a regular penny candy in the 1900s and were the first confection to be sold by weight rather than price.
6. Each color of jelly bean used to be sold separately.
7. In the 1930s, Easter became the most popular time for jelly bean consumption.
8. There are 16 billion jelly beans manufactured solely for Easter. (That’s enough to circle the Earth 3 times.)
9. Jelly beans were President Reagan’s favorite candy and for his first inauguration, 7,000 pounds of jelly beans were ordered and distributed. (Jelly Belly created a new flavor, Blueberry, specifically for the event.)
10. It can take anywhere from 7 to 21 days to make a jelly bean.
11. In 35 jelly beans, there are about 130 calories and 37 grams of sugar.
12. Most jelly bean assortments include 8 different flavors.

Greg Mockenhaupt

ProEdge Risk Management Consultant

P: (402) 685-5613 | C: (402) 380-9855 | Greg.Mockenhaupt@cvacoop.com

1007 County Road O

Oakland, NE 68045

www.cvacoop.com

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