LABOR DAY: All Premier elevators and offices will be closed Monday, September 1
ATTENTION: Does setting a floor now with UNLIMITED UPSIDE potential, if the market rallies, sound good to you? Call us about the FOUNDATION contract. Kurt- Sidney 688-2307 Tom- Tolono 485-6630 Maynard- Dewey 897-1111
PLEASE BE AWARE: In light of recent developments we have re-evaluated our policy regarding acceptance of corn with traits that are not approved for worldwide consumption. To protect access for all Premier members to all available markets we will NOT be accepting Duracade® corn grown in 2014. A letter was sent to all patrons the week of March 3, 2014 to further explain Premier’s position.
Some solid economic data this week in the U.S. helped drive the S&P 500 above the 2,000 mark for the first time. The heads of the world’s major central banks at the Jackson Hole Conference last weekend struck an accommodative tone, setting the backdrop for the rally this week. The message the market heard was that the European Central Bank and the Bank of Japan may have to introduce new stimulus, while the U.S. Fed will continue to hold off on interest rate tightening until it sees stronger hiring and wage growth. The most remarkable economic report of the week was the Durable Goods report that showed the biggest increase on record (since 1992) of +22.6% month/month, although the gain was attributable almost entirely to aircraft sales by Boeing. The non-transportation, non-defense component of the report rose 1.5%, a better indicator of the current pace of activity. The August consumer confidence reading from the Conference Board rose to the highest level since October 2007, increasing from 90.3 to 92.4. The recent run to the record highs in the stock market is a likely cause for the buoyant mood. For the week, the S&P 500 was up 11.2. U.S. GDP growth in the second quarter was revised from 4.0% annualized to 4.2%, continuing the theme of an improving economy. Better business investment and better trade balance were behind the revision. Weekly jobless claims inched down to 298 thousand. On the political front, Ukraine says Russia has invaded, and NATO showed satellite images of Russian troops in eastern Ukraine. Western leaders such as the UK’s David Cameron warned of additional consequences. Crude oil rebounded modestly this week, posting a gain of $2.31 to settle at $95.96 per barrel. Reminder: grain markets will be closed on Sunday night, August 31 and Monday, September 1 for Labor Day, reopening Monday at 7:00 pm CT. Corn continued its sideways trend with the December trading between $3.58 and $3.81 per bushel for the last four weeks. Expectations for a tremendously big crop have not been dampened and without new demand the upside has been limited. Spillover support from the wheat market, Ukraine/Russia situation, likely kept us from new contract lows. Early yield reports out of the Delta are running from 170 to 220 BPA! Producer selling has dried up with many reports of growers intending to just hold remaining stocks into new crop carries. Weekly export sales were slightly negative for old crop and better than expected at 27.4 million bushels sold for the 2014/2015 crop year. Weekly ethanol production was down 2.6% from the previous week, but still 11% higher than a year ago. A plant closed since 2012 has reopened in Mount Vernon, IN. For the week, December corn was down 6 ¾ cents to close at $3.64 ¾ per bushel. Soybeans were divided into two very distinct markets, old crop and new crop. Old crop supplies are so snug that there were reports of some plants not having meal to offer for sale. Basis levels for quick shipment old crop beans skyrocketed in the interior. If you offered beans for sale, you needed to be prepared to have them scooped up. As the market bridges the gap to new crop, Delta harvest yield reports were running extremely well. There were reports of yields 96 BPA or higher! Recent rains kept ideas for higher yield estimates on the front burner. Weekly old crop export sales were a small net negative of 2.3 million bushels. New crop sales were very good at 47.4 million bushels. It’s thought that the old crop sale cancellations will be rolled into new crop. Without weather scares, the trend remains lower. For the week, September soybeans crashed 76 ½ cents lower to $10.89 ½, November beans tumbled 17 ¾ cents lower to $10.24 ¼, December meal fell $2 to $350.70 and December oil dropped 46 ticks to 32.14. Activity in the wheat markets this week was politically based with Russian President Putin meeting with Ukrainian President Poroshenko and Russian military moving into the country conducting operations aiding rebels. The geopolitical tensions have added a risk premium into futures. Many feel that Russia is seeking a land corridor to Crimea. Spring wheat harvest delays continued this week due to excess moisture in parts of northern MN, ND and northern SD. Vomotoxin continues to be an issue in certain areas mainly north eastern SD and western MN. Reports of wet wheat persist with wheat coming to elevators with 14%-18% moisture which has prompted elevators to begin drying. Protein levels remain good with many reports between 13.5 to 14.5%. 2.0 parts per million or less is milling quality. On the export front, France imported a small jag of Latvian milling wheat due to poor interior quality. The International Grain Council increased 2014-15 world wheat crop 11 MMT to 713 MMT. The IGC cited larger crops in Russia, European Union and China. SovEcon estimates the 2014-15 Russia exports at 23-24 MMT, August USDA estimate was 22.5 MMT. Statistics Canada estimates will be released September 5. Currently the spring wheat is pegged at 19.972 MMT. Total wheat crop is expected to total 27.7 MMT. Changes in the December contract for the week: Chicago up 1 ¼ cents at $5.63 ½, Minneapolis dropped 4 ¾ cents to $6.29 ¾ and Kansas City was 1 ¼ cents lower at $6.42 ¾ per bushel.
Premier’s Cooperative Crop tour released a yield estimate of 211/bu on 8/21
HAVE A PREMIER DAY The information contained in this report is believed to be reliable but is not guaranteed to accuracy or completeness by Premier Cooperative, Inc. This report is provided for information purposes only and is not furnished for the purpose of, nor intended to be relied upon for specific trading in commodities here in.
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