It was a rough week for the grain futures as funds continue to focus on macroeconomic influences to the grain market. We saw the funds sentiment turn increasingly bearish following the disappointing export sales report on Thursday. This was coupled with the continually improving new crop production worldwide and grain sales going to other countries that are under cutting our export prices. The week ended with Corn down 28 cents and Winter Wheat was 36 cents lower off of the December futures. While Soybeans were 7 cents lower off of the January futures month and Spring Wheat ended the week 5 cents lower off of the March futures.
- Many producers selling Corn bushels this week were locking them in on Tuesday after a 12 cent move pushed cash prices back above $6.00 at most locations. A majority of Corn target interest is for New Crop 2012 delivery with many producers looking to lock in $6.25 and $6.75 futures fixed off of the December 2012 futures.
- A majority of producers looking to sell Soybeans this week were locking in prices on Tuesday as the market closed 22 cents higher on the day. Producers looking to price some more Soybeans using targets are looking to capture $11.50 and $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 Monday as the markets were first showing signs of slipping. Producers placing targets for spring wheat are looking to sell some at futures prices of $10.00 and better.
Redfield Energy is posting the best cash corn bid along Hwy 281 for November and December delivery with a cash price of $5.85. Carry in the Corn market continues to fade away, as a producer can only pick up around 10 cents cash carry for Corn contracted for May delivery over November delivery.
Most of our shuttle loading facilities are posting a cash bid of over $11.00 for nearby delivered Soybeans. Currently, the Soybean market is rather flat, which is providing very little incentive to carry Soybeans by forward contracting.
Mellette and Redfield are posting the best Spring Wheat cash bids along highway 281 for November, December, and January delivery with a cash price of $9.20. Alpena and Wolsey are posting the best Winter Wheat cash bids along Hwy 281 for April and May delivery with a cash price of $6.47 for April 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 16 cents, New Crop 2012 prices Decreased by 15 cents;
Soybeans – Nearby prices Decreased by 2 cents, New Crop 2012 prices Decreased by 11 cents;
Spring Wheat – Nearby prices Decreased by 15 cents, New Crop 2012 delivery prices Decreased by 17 cents;
Winter Wheat – Nearby prices Decreased by 36 cents, New Crop 2012 delivery prices Decreased by 39 cents;
Upcoming dates to note:
- November 24th: Markets & Wheat Grower Locations are Closed in Celebration of Thanksgiving Day.
- November 25th: Export Sales @ 7:30am
- November 25th: Markets Close @ 12:00pm
*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.