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MARKET COMMENTARY

Morning Comments December 31, 2018

Monday, December 31, 2018, 2:12 PM
Submitted by: Landus Cooperative


Good morning!

 

Grains trading higher this morning as soybeans lead the way.  Traders finding some hope in President Trump’s announcement over the weekend that he had a long phone conversation with Chinese President Xi and that he expects good things to happen on the trade front with China.  Of course, the trade immediately took that to mean more soybean sales.  However, given that the US soybean stocks are record large and the next Brazilian soybean harvest is now only 2-3 weeks away, it is tough to get too excited about buying the soybean market and we would certainly see any rallies as selling opportunities.

 

There is a lot of concern that the January 11th final production and WASDE reports will not be put out either if the shutdown continues into early January.

 

Opening calls:

Corn:  steady to a penny higher

Beans: 4 to 5 higher

 

A lot of farmers that we talk to have expressed a need for more assistance marketing their grain. Many feel that they do a really good job of maximizing yields, but aren’t very good at marketing grain.

 

Because of this, we have several new marketing alternatives that have become available to our growers in the past couple of years to complement some of the more traditional alternatives we’ve offered for a long time.

 

If you are in a similar situation, here is a look at our 2019 New Crop Opportunity Plans. There are 2 separate and distinct alternatives:

 

The Landus Cooperative Managed Marketing Contract is NEW this year.

  • Landus Cooperative Merchandisers will price your bushels and give you regular updates on their progress.
  • The pricing period runs from January 14th through September 20th. This is available for CORN only; increments of 5,000 bushels.
  • At the end, you will have a futures-only contract and will need to set your basis to establish the cash price.
  • There is a 6 cent per bushel fee for this contract. The sign-up deadline of January 10th is fast approaching.

 

The Averaging Contract sells a portion of the total committed every day during the pricing period.

  • For corn, that is from March 11th through June 28th; Last year’s average was a little over $4 December futures (after fees). 5,000-bushel minimum and increments.
  • For soybeans, it’s April 29th through August 2nd; Last year’s average was $9.45 November futures (after fees).  2,500-bushel minimum and increments.
  • This has been a consistently good program through the years, as it is designed to price during the traditionally high portion of December corn or November soybean futures.
  • There is a 4 cent per bushel fee for corn or beans in the Averaging Contract.
  • Sign Up Deadline is March 1, 2019.

 

We encourage you to give one, or both, of these a try this year. Please contact your local GMA for more details.

 

 

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2321 North Loop Dr., STE 220
Ames, IA 50010
515-817-2100
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