Grain Division Report

For those of you that have delayed pricing contracts expiring at the end of May, you will be receiving an invoice and a letter in the mail outlining what you need to do before the end of May. Please watch for that arriving in your mailbox or contact the Southwest Grain location that holds your delayed pricing contract for more information.

Cash spring wheat put in a recent low of $7.04 on May 2. The decline was mostly due to U.S. spring wheat planting getting started, Canadian planting intentions reported more spring wheat acres, and some forecasted rain for the parched winter wheat crop. Since May 2, cash spring wheat has increased $.70; all that in just four days. The turn higher was helped by Twitter pictures of some sad looking winter wheat fields. There are some decent looking fields on Twitter too. To put this move higher into perspective, on the futures side, this is about a 62% retracement of the move lower that started April 18, the most recent high. Extending out to the next high of April 3 the retracement is about 60% of that move. For new crop hedge-to-arrive contracts, Minneapolis December has recovered to about $8.50.

Remember to place offers with us for your target prices on spring and winter wheat, corn, and soybeans. This is a good idea all the time, but especially so during busy times.

Southwest Grain is planning on handling canola at Dickinson Terminal and New Salem. Lemmon will also continue to handle canola. Dickinson Terminal and New Salem will begin with this year’s new crop. New crop bids have been posted for a few weeks for all three locations.

Please remember to clean out trucks and augers of all fertilizer and treated seed before delivering grain to the elevator.