Joel's Comments 05/22/12 8:56:39 AM|
| Good Morning|
Last Trades: ZCN12: 6.25 ZSN12: 14.09 MWEU12: 7.86
Sunday night we embarked on a new era of grain trading, the grain sector now trades from 5PM to 2PM. A straight 21 hour trading day. As you can see from my open there is no morning call as the markets are already trading. There is still the open outcry from 9AM to 1:15PM. After the open outcry is complete at 1:15PM the market is still actively trading until 2PM. At 2PM it closes and then the settlement for the day is based on the 1:15PM open outcry close. This is all quite confusing, especially for us as we try to wrap our arms around it. So for example between 1:15 and 2 the market could trade 20 cents higher or vice versa but it will still settle back to the 1:15 price. Due to this CHS Marshall Regional will only buy grain when the market is actively trading.
Basis is starting to feel a little heavy as farmer selling increased with the board rally on corn at the end of last week. Like I said last week, once end users are covered bids will back off considerably. Old crop corn is +10N and new crop is -50Z. Old crop beans are -52N and new crop is -68X. Planting progress is well ahead of the five year average as corn is 96% plant, 76% emerged, and 77% good/excellent condition. Beans are 76% planting and 35% emerged, again well ahead of the five year average.
With the new hours of grain trading morning commentary feels obsolete as the markets are moving while I type. Moving forward I will use this wire more sporadically as a way to inform about bigger market events, i.e. USDA reports, large market moves, or basis changes.
Have a good day.
Ruthton Area Grain Department Manager
Office: (507) 658-3450
Cell: (507) 828-0552