Of the major commodities, spring wheat saw the most activity recently. With little fundamental news available, investment money is the source of the futures movement. Spring wheat futures have been range bound between $8.85 and $9.40 since the end of December. Expect more of the same until a move above $9.40 can be maintained. This would open the possibility of testing $9.50. Keep cash sale targets in mind. You can take action on those targets by turning them into offers that will automatically trigger a sale for you when your price target is hit. This is a great way to reduce some of the stress of marketing. Kayla and I would be happy to help you establish your offers! New crop pricing should be considered too. Quietly, Minneapolis December futures have crept back to $9.00. This is a good place to start new crop sales and scale up with offers. Hedge-to-arrive contracts are a good fit for marketing new crop.
Adding corn to our handle at New Salem went very well and we thank you for supporting our effort! Corn demand remains dominated by the interior market as the US export program has not found any life. Writing an HTA around $6.00 December futures would be a good place to start marketing new crop.
The US soybean export program has ground to a halt with South American soybeans taking the focus of world demand. Starting new crop soybean sales at $14.00 would be ideal, but with $.55 of downside risk from the current Nov futures price of $13.85, the risk-reward points to this being a great price to start at too.
Cash offers were mentioned as part of a spring wheat marketing strategy, but these can be utilized in corn and soybeans too.
Brian Fadness, Grain Division Manager