After an underwhelming USDA report was, for the most part, within trade guess estimates; it left traders with a neutral to bearish feeling on the grain market, as the market had factored in current USDA report results at these prices. By the end of the week we saw Corn end 17 cents lower and Winter Wheat was 14 cents lower off of the December futures. While Soybeans were 46 cents lower off of the January futures month and Spring Wheat ended the week 9 cents higher off of the March futures.
- Many producers selling Corn bushels this week were locking them in on Tuesday to lock in sales before the USDA report, as Corn closed around $6.16 cash on the day for most shuttle loading facilities and partnered ethanol plants. Many of the nearby targets were pulled over the week as the bushels were sold at current board prices. A majority of Corn target interest is now for New Crop 2012 delivery with many producers looking to lock in $6.25 futures fixed off of the December 2012 futures, with smaller groups of targets sitting in 5 cent increments above the $6.25 mark.
- A majority of producers looking to sell Soybeans this week were locking in prices on Wednesday as the market fell apart. Producers looking to price some more Soybeans are looking to capture $12.00 cash beans for nearby delivery or to price bushels off of DP. While other producers are looking to lock in some New Crop 2012 Soybean bushels at the $14.40 futures fixed mark.
- Producers interested in selling Spring Wheat and Winter Wheat this week were locking in bushels on Tuesday before the USDA report for November or December delivery with cash prices around $9.30 for Spring Wheat and cash prices around $7.25 for Winter Wheat. Cash prices continue to firm more for nearby delivery over forward month delivery. Producers placing targets for spring wheat are looking to sell some at futures prices of $10.00 and better.
A majority of the wheat grower shuttle loaders and partnered ethanol plants are currently paying $5.98 for nearby delivered Corn. Carry in the Corn market has slowly been fading away, as a producer can only pick up around 15 cents cash carry for Corn contracted for May delivery over November delivery.
Alpena, Mellette, and Wolsey are the best December delivery bids along 281 with a cash price of $11.08. Just like in Corn, the carry in the Soybean market has been fading; as a producer can only pick up around 8 cents cash carry for Soybeans contracted for February delivery over November delivery.
Mellette is posting the best Spring Wheat cash bid along highway 281 for January delivery with a cash price of $9.25. Alpena and Wolsey are posting the best Winter Wheat cash bids along highway 281 for December, April, and May delivery with a cash price of $6.97 for December delivery. Currently forward cash contracting on wheat is not providing any carries under current market conditions.
For the week in local cash prices:
Corn – Nearby prices Decreased by 11 cents, New Crop 2012 prices Decreased by 39 cents;
Soybeans – Nearby prices Decreased by 42 cents, New Crop 2012 prices Decreased by 38 cents;
Spring Wheat – Nearby prices Increased by 9 cents, New Crop 2012 delivery prices Increased by 4 cents;
Winter Wheat – Nearby prices Decreased by 1 cent, New Crop 2012 delivery prices Decreased by 17 cents
Upcoming dates to note:
- November 17th: Export Sales @ 7:30am
*Always call a specific location for space and receiving capabilities.
*The information contained above was taken from sources which Wheat Growers believe to be reliable, but is not guaranteed by Wheat Growers as to accuracy or completeness and is made available for information purposes only. There is a risk of loss when trading commodity futures and options.