Mission Statement "To grow profitablility, retire shareholder equity, and provide sound employment opportunities while striving to keep the local communities strong."
GOOD AFTERNOON APRIL 17, 2014 There WIll Not Be Any Markets On Friday April 18th In Observance Of Good Friday!
Lunar Eclipse April 15, 2014
Co-Ag Farm
Recently there have been many questions about wether or not an HTA contract is feasible right now....so let's find out. Starting today, I sold 1 (5000bu) September 2014 Chicago (ZWU14) futures contract at 6.14, cash today was at 6.85. That gives me a starting basis point of +71. Today's nearby basis is +1.18. If the Septemeber basis runs to anything close to that number it will be great, and will add to what would have been a 6.85 cash sale. However, if the basis goes the other way it will be taking away from what would have been a 6.85 cash sale, and if it goes negative it will really hurt!
I'll also do the same with a December 2014 Chicago contract (ZWZ14) sold at 6.29, cash at 6.95 with a +66 starting basis to see is the later months fare any better or turn out worse.
I'm taking a beating on my basis levels so far with both HTA contracts!! Currently SEP14 basis is at +38 and DEC14 basis is at +36 setting me back 33 and 30 respectively. If I locked them today my SEP Portland price would be 6.52 and my DEC Portland price would be 6.65.
I'll update weekly to track how this HTA contract is working out.
Take a look at the Co-Ag Farms J.V. Link to find out more.
Wheat futures closed up 2. Wheat bulls continue to ask how much damage has been done to the US HRW wheat crop by the recent round of sub-freezing temps. The good folks over at Kansas State University are saying that at "boot stage," severe damage can occur when it's sub-30 degrees Fahrenheit for more than two hours. In the "jointing stage," you get moderate-to-severe damage when temp's drop to sub-24 degrees for more than two hours.
Pea & Lentil bids - 03/31/14 - Markets are steady to improving. We have sold a good volume of regular lentils at current levels. Good demand has pushed Pardina lentils and Green Peas higher. Yellow Split Peas purchased by the USDA on the last tender averaged over $2.00/cwt higher than previous tenders. The higher levels were at or slightly above current bid levels. USDA continues to request offers of Yellow Splits, so higher offers may be possible. Early expectations are that green pea acres will be up this spring, while yellow peas and regular lentil acres will be down. Pardina lentils will likely be unchanged.
