Starting December 1st, Prairie Ag Coop will be offering Price Later Contracts with FREE service charges. Please contact the Mt. Union office for more details. 319-865-1450
Prairie Ag Coop will be holding a grain outlook meeting at the community building in Mt. Union on February 17th at 10:00 am. Guest are welcome.
PM Comments
Wednesday, February 22, 2012 Grain Commentary
Corn—prices struggling with the bearish outlook report on Friday and the strong basis levels. Major money players seem unwilling to accept the tight cash situation as bullish. The major money is betting on record acres and early planting progress to set the stage for record production. But the old crop situation is very tight and demand show signs of increasing not decreasing. Seducing the producer to exit old crop stocks is a delicate balance between basis and flat price appreciation. Commercial ownership appears to be minimal. Spreads continue to tighten indicating pipeline stocks are declining more than demand. Today’s reversing of yesterday’s losses is puzzling considering new fundamentals have not surfaced, but yesterday’s losses were the same. Technically prices eclipsed the major moving averages on the downside yesterday only to do the reverse today. Basis continues to outpace last year by 15-20 cents. A strong indicator of fireworks ahead in the old crop.
Soybeans—price action taking a breather today as rains across parts of Argent5ina and Brazil weaken the bullish momentum. Prices have moved steadily higher since middle of January gaining over $1.25. A pullback could be forthcoming, but only a blip toward the $13.00 mark. Soon the South American harvest will add selling pressure through the late spring months coinciding with US planting progress. The dry pattern already existing in the Western Corn Belt could easily expand to create an early new weather rally. Friday the outlook projection is expected to support a reduction in new crop carryout. Could be “BUY THE RUMOR, SELL THE FACT”. The report could produce buying in corn and selling in soybeans???
Thursday will feature a mix of light rain and snow in the northern and central Midwest, with snow focused on Minnesota, Wisconsin and the Dakotas, and rain from Iowa east to Indiana. » More DTN Weather Commentary
