Outside market strength provided support to commodities early on in the week. However, the market was soon weighed down upon by yet another disappointing export sales report, rumors of a bumper Corn crop in China, and then South America received some much needed rain in their dry areas. By the end of the week we saw Corn Up 5 cents, Spring Wheat Up 37 cents, and Winter Wheat was 27 cents higher off of the March futures. While Soybeans were 29 cents higher off of the January futures month.
- After finally seeing some green in the Corn futures market again, it provided some producers with incentive to sell a few of their bushels before prices turned south again, which turned out to be a great idea as many producers selling Corn bushels this week were locking them in Monday through Wednesday around a cash price of $5.75. Currently, 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 Monday as the nearby Soybean futures closed 14 cents higher on the day. Producers looking to price some more Soybeans using targets are looking to capture $11.00 and $12.00 cash Soybeans 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 Wednesday before the market 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 December delivery with a cash price of $5.71. Trying to capture market carry in the cash Corn market is virtually nonexistent, depending on the location and time frame in which a producer is trying to roll a contract at. Currently, a producer can only pick up around 9 cents cash carry for Corn contracted for May delivery over December delivery.
Alpena, Mellette, and Wolsey are posting the best bids along Hwy 281 for April, May and June Delivery with an April cash bid of $10.78. The Soybean market is still remaining rather flat, which is providing very little incentive to forward contract and carry any Soybeans.
Mellette and Redfield are posting the best Spring Wheat cash bids along highway 281 for June delivery with a cash price of $8.24. Alpena and Wolsey are posting the best Winter Wheat cash bids along Hwy 281 for April, May, and June delivery with a cash price of $6.66 for April delivery. Currently forward cash contracting on wheat is providing limited market carry under current market conditions.
For the week in local cash prices:
Corn – Nearby prices Increased by 8 cents, New Crop 2012 prices Increased by 18 cents;
Soybeans – Nearby prices Increased by 32 cents, New Crop 2012 prices Increased by 36 cents;
Spring Wheat – Nearby prices Increased by 17 cents, New Crop 2012 delivery prices Increased by 29 cents;
Winter Wheat – Nearby prices Increased by 30 cents, New Crop 2012 delivery prices Increased by 30 cents;
Upcoming dates to note:
- December 8th: Export Sales @ 7:30am
- December 9th: USDA Supply & Demand Report @ 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.