Friday, January 23, 2015
Today’s Futures Closes:
Mar 15 Corn
May 15 Corn
July 15 Corn
Sept 15 Corn
Dec 15 Corn
Dec 15 Oats
Mar 15 Meal
Mar 15 SB Oil
Feb 14 Cattle
Mar 15 Feeder
Feb 14 Hogs
$3.8675
$3.9525
$4.0275
$4.0925
$4.1725
$2.9625
$331.5
$31.60
150.350
201.825
69.300
+3.0
+3.25
+3.5
+4.0
+4.0
-2.0
+1.4
-0.37
-3.000
-4.500
-2.300
Jan 14 Soybeans
Mar 15 Soybeans
May 15 Soybeans
Nov 15 Soybeans
Jan 16 Soybeans
Mar Rapeseed
Mar 14 Cotton
Dec 15 Cotton
Mar 15 Rice
Sep 15 Rice
Nov 15 Rice
$9.7275
$9.795
$9.8525
$9.5975
$9.655
$461.5
$57.30
$61.50
$1101.0
$1119.0
$1129.0
-4.0
-3.5
-3.5
-1.25
-1.25
-0.7
-0.46
-0.21
-15.0
-14.0
-14.0
Mar 14 CH Wheat
July 15 CH Wheat
Mar 14 KC Wheat
July 15 KC Wheat
Mar 14 MN Wheat
Sep 15 MN Wheat
Mar Dollar Index
Feb Crude Oil
Apr Gold
Mar S&P
Mar Dow Futures
$5.30
$5.365
$5.64
$5.7225
$5.76
$5.985
95.053
$45.59
$1293.6
2043.90
17588
(Futures contracts highlighted in green were the bull leaders today; futures prices highlighted in red were the bear leaders today.)
The biggest story this week in the markets was the
continued rally in the US dollar, which closed at its
highest mark since 2003! Drop in European
currencies led to money flow to the dollar as well as
precious metals – a flight to safety. Weekly Export
Sales last week were marketing year highs for corn
& cotton, but with the continued strong dollar we’ll
see if that will continue or not.
For the week, corn held up well, with March corn
only down ¼ cent. March soybeans dropped 4
cents on the week, Chicago March wheat fell 3 ¾
cents, March cotton dropped 1.93 cents, & March
rice fell 31 ½ cents. I think the fundamentals for
corn remain somewhat positive in 2015, with the
trend in recent USDA reports to see ending stocks
lowered, with export demand picking up for now,
ethanol production still holding firm, and 2015
acreage expected to drop 2+ million acres. The 100day MA should keep providing good support.
-3.75
-4.25
-0.75
-0.75
+0.5
+0.75
+0.691
-0.72
-8.1
-12.50
-149
(continued)
(continued)
To the right are updated pricing
tables for the DCIS Price Select
program for 2015. Price Select is
our new crop insurance pricing
program that allows producers
to use more months than just
February to establish their
insurance base price. We’re half
way through the month of
January, and right now the
average December corn price is
$4.18 – a little above the current
market – and the average
November soybean price is
$9.93 – more than 30 cents
above the current market.
Producers can consider adding
either or both the March and
April months to their policies,
and if either average is higher
than their February base price,
they’ll get to use that average
for their insurance guarantee.
I’m strongly considering the
month of April for corn, since
we’re expecting to plant fewer
acres this spring, and since a
weather issue this spring or a
planting rally to try to “buy”
corn acres could help prices. But
I also want to see first where the
February average ends up prior
to making that decision.
Bottom line – this is a nice tool
for producers to potentially
increase their base price and
hopefully get a chance to exceed
their cost of production with
their policy guarantee.
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