Market Report


Blog/Radio:

Some key considerations prior to crop insurance renewal can be found in my blog here:

http://www.cvacoop.com/blog/crop-insurance-around-the-corner/

 

Also for fun I have attached the radio spot I did on crop insurance with Chad Moyer, in case you are interested in giving it a listen.

 

Markets:

@10:20am

Dow +39.07

S&P +8.17

Nasdaq +10.54

U.S. stocks rebounded today, but gains were muted as investors awaited in the coming days comments from the European Central Bank and the Federal Reserve.  The Dow Jones Industrial Average surpassing 17,000 this am.

Metals prices have been on a roll, but some wonder how long it can last.  Since mid-January, the price of copper is up 13.5%, while zinc has jumped about 25% and iron ore has soared 57%. Analysts cite a number of reasons for the rise, from an improving Chinese property market to a sense that metals were oversold in 2015.

April Oil Future continue to re-bound reaching as high as $38.04 this morning.  Thus looking more promising for ethanol and bio margins.

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Grain Markets:

@11:11am

May Corn -0’4 @ 3.60’0

May Beans -1’4 @ 8.83’0

 

USDA Supply & Demand report came out today at 11:00am, showing corn unchanged and beans with an additional 10 mil carryout.  Neutral information and the reaction was uneventful.

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Greg Mockenhaupt

ProEdge Risk Management Consultant

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

1007 County Road O

Oakland, NE 68045

www.cvacoop.com

USDA Report


USDA raised its average corn yield forecast to 168.8 bushels per acre from its previous projection of 166.8 bushels.  The average soybean yield increased 46.9 bushels from USDA’s previous of 46 bushels.  No changes seen in corn acres planted/harvested, however there was a reduction in beans planted acres of -800,000 and harvested of -900,000.

Corn ending stocks for 2015-16 came in at 1.7 BB, up 114 million bushels from last month’s estimate.  Soybean ending stocks for 2015-16, at 470 mb, were up 45 mb from last month.  USDA estimated ending stocks for 2014-15 at 240 mb

 

Market reaction was incredibly negative, New crop beans nearly hitting limit down, all in just a few minutes.

 

Currently the markets are (12:12pm)

Dec Corn -21 @ $3.66 ½

Nov Beans -62 ½ @ $9.09

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Greg Mockenhaupt

ProEdge Risk Management Consultant

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

1007 County Road O

Oakland, NE 68045

www.cvacoop.com

Market Report


At market close

Sept Corn – ½ @3.92

Sept Beans -3 ¼ @ 9.94 ½

 

Morning markets opened strong and remained strong for most of the morning, but finishes in negative territory.  This afternoon  we saw Crop Ratings Good to Excellent fall 3% in corn and fall 2% in beans,  which was in line with expectations.

 

Likely to see some positioning or a two sided trade as we approach tomorrow morning ‘s 11 AM USDA Crop Report.  More info to come via email tomorrow post report.

 

The trade continues to focus on weather as the primary story.

 

Strategy: If you need to make a sale, reward the rally, in addition, make a high priced offer to cash in on potential report volatility.  Example of a high price offer is $4.30 for Dec corn ($4.32 is limit up)

 

Invitation:

ProEdge Grain Marketing meetings are available post report, I will be discussing the current market info along with Russ and Dave at these events below.  “Coffee with the ProEdge team”

East Hub July 1st 9am

West Point July 2nd 9am

Hooper Fire Hall July 7th 9am

 

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

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