Mission Statement "To grow profitablility, retire shareholder equity, and provide sound employment opportunities while striving to keep the local communities strong."
GOOD MORNING MARCH 06, 2015
Co-Ag will be hosting a hospitality room at the State B Tournament Thursday - Saturday from 2PM-6PM! Come see us!!
Monsanto Company has agreed to a $2.375 million settlement with soft white wheat farmers in Idaho, Oregon, and Washington to resolve a number of lawsuits related to the May 2013 discovery of genetically-modified wheat on a farm in Eastern Oregon and subsequent temporary limits on certain exports of soft white wheat. Under the settlement, Monsanto has agreed to pay $2.125 million into a settlement fund to compensate eligible farmers who sold or priced for sale between May 30, 2013 and November 30, 2013 soft white wheat farmed in Idaho, Oregon or Washington. Monsanto also will pay Washington, Oregon and Idaho wheat growers associations an additional $250,000.
To share in the settlement fund, you must complete and submit a Claim Form. If you do not file a Claim Form, you will not share in the settlement fund and you will not release your claims against Monsanto Company. www.swwsettlement.com
The main word dominating the wheat markets, exports. Combined with strong US dollar, cheap world wheat, and the slow down at west coast ports the US is sitting on a large pile of domestic wheat. With today’s weekly export reports coming out this morning, we saw the March contract drop 18 and the May contract drop 13. Not a lot to get excited about, Egypt backing out of a tender early this week and buying French and Romania wheat was a blow to the markets, especially considering the Egyptians had 100 million in US export credit to use. But I am a glass is half full guy, and looking forward to March, exports in the US have increased considerably. Hopefully we can repeat the same trend this year, I also think we will start seeing more and more winterkill reports hit the market as we start to get into spring work. Again, I expect to see some rallies to price old crop and new crop coming this spring. The Russia/Ukraine episode is still very much alive, especially with the comments Putin made this week in the terms of Russia’s military strength. We still have a long way off till combines are hitting the fields and the crop is actually in the bins, so mother nature is still in the game. The issue concerning the west coast ports should be coming to an end soon, Portland’s biggest customer is claiming and has started to pull ALL business away. On the technical side of market, the funds are 20,000+K short and if we see a fundamental rally we could see some quick buying which could help us get that rally we have been looking for.
Concerning pricing grain, I am still in patience mode. With a NC basis (Cash price-futures price), still hovering around the $1.20 range, I would recommend not place a HTA. But we are starting to get into the range of a profitable basis contract. I am looking for a range of $1.30 to $1.50 at this moment, will depend on how the market is reacting. I am playing the cash market right now, and if we can get up to the 7.00 NC price I will price another 20% of crop, I still plan on having 40-50% of crop priced by end of spring/early summer if profitable levels present themselves.
Quick Fact: A bushel of wheat makes about 42 pounds of pasta or 210 servings of spaghetti
Take a look at the Co-Ag Farms J.V. Link to find out more.
Wheat futures are currently up 2. The Chicago SRW wheat contract has posted fresh new lows this week and the technicians suspect we could soon see the market test the $4.66^2 low set back in late-September. The rapid decline in the euro currency continues to add to price pressure. On the flip side, many of the bulls are keeping a close eye on the warming temps that are being forecast through mid-March across a large swath of the top US wheat producing states.
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