With all eyes on South America last week as a lack of rains in Argentina and Brazil have been adding support to the market as these two countries are looking at a reduction in production and we could see a shift of Chinese purchases to the U.S.  This week everyone will be continuing to look at the South America situation and see how large of an impact this could have and when rains will be expected next.  At the end of the week Corn Up 36 cents, Spring Wheat Up 33 cents, and Winter Wheat was 35 cents higher off of the March futures.  While Soybeans were 33 cents higher off of the January futures month.  A majority of producer sales were seen on Thursday as futures were being locked in on basis fixed contracts and new hedge-to-arrive and cash contracts were being made for January delivery.

  • A lot of selling interest came in between the $5.75 and $6.00 cash contract mark with the rally last week.  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.
  • Selling interest in Soybeans was sparked after the $11.00 cash mark was crossed and producers were deciding it was time to take advantage of that and price some bushels off of DP.  Producers that are looking to price some more Soybeans using targets are eyeing $12.00 cash for nearby delivery.  While other producers are looking to lock in some New Crop 2012 Soybean bushels at the $12.00 and $14.40 futures fixed mark.
  • Producers interested in selling Spring Wheat were generally locking in bushels at the $8.25 and better mark for cash Spring Wheat, while Winter Wheat was being sold around the $6.50 mark last 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 $6.70 and better cash price mark.

Aberdeen West Terminal is posting the best cash corn bid North of I-90 for December and January delivery with a cash price of $5.97; with Redfield Energy only 2 cents lower for a cash price of $5.95.  The cash corn market remains rather flat for carries as producers are only able to pick up around 8 cents cash carry for corn contracted for May delivery over December delivery.

Wheat Grower shuttle loading facilities along Hwy 12 are posting the best cash soybean bids for December, January, April and May delivery with a cash bid of $11.08 for December delivery.  The soybean market still remains flat for carries, which is providing very little incentive to forward cash contract soybeans.

Mellette and Redfield are posting the best Spring Wheat cash bids along Hwy 281 with a cash price of $8.49 for nearby delivery.  Alpena and Wolsey are posting the best Winter Wheat cash bids along Hwy 281 for March through June delivery with a cash price of $6.60 for April delivery.

For the week in local cash prices:
Corn – Nearby prices Increased by 36 cents, New Crop 2012 prices Increased by 21 cents;
Soybeans – Nearby prices Increased by 33 cents, New Crop 2012 prices Increased by 29 cents;
Spring Wheat – Nearby prices Increased by 28 cents, New Crop 2012 delivery prices Increased by 20 cents;
Winter Wheat – Nearby prices Increased by 31 cents, New Crop 2012 delivery prices Increased by 36 cents;

Upcoming dates to note:
- December 30th:  Export Sales @ 7:30am
- January 2nd:  Futures Markets Closed for New Years - (Grain Markets will re-open @ 9:30am Tuesday)

*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.