Outside market weakness weighed down commodities early on in the week. However, the market had a small amount of bullish support with drought fears in South America possibly cutting production. In order for this small pop of bullish support to continue, it will depend on whether or not South America receives any rain over the next couple weeks. By the end of this week we saw Corn Down 11 cents, Spring Wheat Down 16 cents, and Winter Wheat was 22 cents lower off of the March futures. While Soybeans were 23 cents higher off of the January futures month.
Most producer sales were pretty steady throughout the week with most being basis based, whether it is creating a basis fixed contract or locking in the basis on hedge-to-arrive contracts as we are seeing basis levels that are better than normal for this time of the year. Currently, a majority of Corn target interest is for New Crop 2012 delivery with many producers looking to lock in $5.75, $6.00, and $6.25 futures fixed off of the December 2012 futures.
A majority of producers looking to sell Soybeans over the week were locking in prices on Thursday and Friday, with a mixture of nearby and new crop sales as the bean market saw a little bit of a bounce. Producers that are looking to price some more Soybeans using targets are eyeing the $11.00 and $12.00 cash bean marks 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 when the market had a temporary day bounce and grabbed some targets that were working before things slipped away for the week. Producers placing targets for spring wheat are looking to sell some at a cash price of $9.50 and better. As for winter wheat, producers are looking to lock in new crop bushels around the $6.50 and better cash price mark.
Aberdeen West Terminal is posting the best cash corn bid North of I-90 for December delivery with a cash price of $5.61 with Redfield Energy only 1 cent lower for a cash price of $5.60. Under current market conditions, cash corn carry remains rather limited as producers are only able to pick up around 9 cents cash carry for corn contracted for May delivery over December delivery.
Wheat Grower shuttle loading facilities along highways 12 and 281 are posting the best cash soybean bids for April and May delivery with a cash bid of $10.73. Currently, the Soybean market is rather flat, which is providing very little incentive to forward contract and carry any Soybeans.
Wolsey is posting the best Spring Wheat cash bids along highway 14 with a cash price of $8.16 for nearby delivery. Alpena and Wolsey are posting the best Winter Wheat cash bids along highway 281 for March through June delivery with a cash price of $6.25 for April delivery.
For the week in local cash prices:
Corn – Nearby prices Decreased by 9 cents, New Crop 2012 prices Decreased by 4 cents;
Soybeans – Nearby prices Increased by 24 cents, New Crop 2012 prices Increased by 15 cents;
Spring Wheat – Nearby prices Decreased by 31 cents, New Crop 2012 delivery prices Decreased by 15 cents;
Winter Wheat – Nearby prices Decreased by 22 cents, New Crop 2012 delivery prices Decreased by 21 cents;
Upcoming dates to note:
- December 22nd: 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.