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BRIAN HOOPS

By Staff | Apr 25, 2014

USDA Secretary Tom Vilsack announced the availability of more than $19 million in grants to help train, educate and enhance the sustainability of the next generation of agricultural producers through the Beginning Farmer and Rancher Development Program.

“USDA is committed to the next generation of America’s farmers and ranchers,” Vilsack said, “because they represent the future of agriculture and are the backbone of our rural economy.

“As the average age of farmers continues to rise, we have no time to lose in getting more new farmers and ranchers established.

“Reauthorizing and expanding the Beginning Farmer and Rancher Development Program is one of the many resources the 2014 farm bill gave us to build America’s agricultural future. Through this program, we can build a diverse next generation of farmers and ranchers.”

BFRDP was authorized by the farm bill, receiving $100 million to be awarded over the next five years. The program was originally funded through the 2008 farm bill.

Since then, NIFA has awarded more than $70 million through 145 grants to organizations that have developed education and training programs.

More than 50,000 beginning farmers and ranchers have participated in projects funded by BRFDP.

CORN ANALYSIS

Corn closed the week 3 cents lower. Last week, private exporters announced 125,000 metric tons of corn has been sold to South Korea.

Weekly export sales of corn showed a total of 23.7 million bushels, well above the 6.2 mb needed each week to reach the USDA’s annual forecast of 1.750 billion bushels.

Corn has scored a technical breakout, but is finding selling resistance after a small rally on the weekly charts.

If prices pullback from this resistance, look for the commercials to become buyers as they will view pullbacks in the market as buying opportunities ahead of the always volatile growing season.

The commercial entities as well as large speculators will want to be long ahead of the growing season as traders know the certainty that a weather market brings will open up the trading ranges. Highs for corn are likely to be scored during the summer with weather premium added in the spring.

The weekly crop progress report showed corn plantings nearly identical to last year at 3 percent, compared to 2 percent last year and 6 percent on average.

Strategy and outlook: Producers are 100 percent sold of 2013/14 crop. Producers are 10 percent sold of the 2014/15 crop.

Sell another 15 percent if December futures hit $5.24.

SOYBEANS ANALYSIS

Soybeans closed the week 54.25 cents higher from last week.

Private exporters did not report any private sales last week.

Weekly export sales of soybeans showed 0.7 mb for old crop, bringing total commitments to 1.639 bb, well above the current USDA estimate of 1.580 bb.

The USDA is still assuming foreign buyers will eventually cancel U.S. purchases in favor of cheaper South American product. However, we have never seen net cancelations in the second half of a marketing year.

Like with corn, technical breaks should be well supported by commercial entities as they begin to position long ahead of the growing season as they wish to extend coverage in case prices rally sharply on a weather-related event.

Soybeans closed above major weekly resistance, which may signal to traders another round of strong technical buying.

NOPA crush came in at 153.8 mb, well above the average guess of 146.1 mb, last month’s figure of 141.6 mb and a year ago of 137.1 mb

The March crush was a new all time high crush for the month.

Strategy and outlook: Producers are 100 percent sold of the 2013/14 crop. They should re-own 50 percent of the 2013/14 crop if prices fall to $13.78.

Producers are 10 percent sold of 2014/15 production. Sell another 15 percent if November futures hit $12.50.

This material has been prepared by a sales or trading employee or agent of Midwest Market Solutions and is, or is in the nature of, a solicitation. This material is not a research report prepared by Midwest Market Solution’s Research Department. Brian Hoops can be reached at (605) 660-1155.

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