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BRIAN HOOPS

By Staff | Jun 20, 2014

In light of recent storms impacting Nebraska, farmers and ranchers are being alerted to a phone scam being perpetrated on Farm Service Agency customers. In this scam, a caller claims to be a Farm Loan Services representative and states that FSA owes you disaster assistance funds. The caller then proceeds to request checking account information or credit card numbers, alleging that funds will be credited to these accounts.

If you receive a similar call, under no circumstances should you provide personal or financial information to the caller.

Green Plains Inc. announced that is has acquired the assets of Supreme Cattle Feeders from Agri Beef Co. The asset acquisition includes the feed yard doing business as Supreme Cattle Feeders and the Cimarron Grain storage facility based near Kismet, Kan.

“Supreme Cattle Feeders is one of the premier cattle feed yards in the U.S. and this operation is an ideal adjacent business for Green Plains,” stated Todd Becker, president and chief executive officer. “The custom cattle-feeding business gives us the ability to further process our distillers grains and corn oil, and extend our corn origination network. We also believe that this transaction will be accretive to 2014 earnings.”

USDA is making over $26 million available to combat the PED virus and a similar deltacoronavirus.

In addition, Agriculture Secretary Tom Vilsack has issued a federal order requiring pork producers to report new detections of these viruses.

“There’s no movement restriction; there’s no quarantine requirement, this is a reporting requirement,” said Vilsack, “Producers actually get some resources potentially from USDA for implementation and I don’t know too many producers who turn away from money from USDA.”

The $26 million USDA investment includes more than $11 million in cost-share funds to support biosecurity measures on infected farms.

CORN ANALYSIS

Corn closed the week 11 cents lower. Last week, private exporters did not announce any private sales.

Weekly export sales of corn showed a total of 16.1 mb. In the weekly crop progress report, the USDA reported this year’s crop is off to a great start. Traders were looking for corn g/e ratings to be one of the highest on record at 72 to 76 percent g/e. Ratings actually slipped 1 percent from last week to 75 percent g/e, but this is still one of the highest ratings in the last 15 years. Last year, only 63 percent of the crop was rated g/e at this time. In the monthly supply/demand report, the USDA made no changes to either the old or new crop balance sheets. The timing of theJune report, two weeks ahead of both the quarterly stocks and acreage report, as well as having the majority of the growing season ahead of us, means changes are normally limited, and this year was no exception. The end of the month will have the quarterly stocks and planting intentions report from the USDA. This report could be a shocker to the market as some reports have farmers decreasing seeded acres from the last report in March due to some farmer replanting in the Midwest. Corn has removed all weather premium from prices already this growing season. If no weather threats are posted this summer, look for chart support of $4.30 to be broken in July. Seasonal highs are usually formed by June 23.

STRATEGY AND OUTLOOK: Producers are 25 percent sold of the 2014-2015 crop and own 480 puts on 50 percent of the crop. Bought out of the money December calls on 25 percent of sales as insurance.

SOYBEANS ANALYSIS

Soybeans closed the week 30 3/4 cents lower from last week. Last week, private exporters announced a sale of 117,000 mts of soybeans to China for the 2014-2015 marketing year.

Weekly export sales of soybeans showed 3.2 mb for old crop and 30.2 mb for new crop sales. In the weekly crop progress report, the first soybean ratings of the year came in near the high end of expectations at 74 percent g/e, trade was looking for 71-75 percent g/e. In the USDA supply/demand report, the USDA made minimal changes tothe soybean balance sheet as old-crop crush was increased by 5 mb, which reduced the ending stocks total to125 mb. The strong meal export pace drove the expected increase in domestic crush. For soybean production,rains after June 15 will be viewed as beneficial to crop development and negative for prices. The month of June is not the key reproductive month for soybeans, however, the acreage report at the end of the month could be a shocker to the trade. The market has already anticipated a record seeded acreage, however if producers planted more acres to corn than previously thought, prices could find strength after the report’s release. Seasonal highs are usually formed by June 23.

STRATEGY AND OUTLOOK: Producers are 100 percent sold of the 2013-2014 crop. Producers are 25 percent sold of 2014-2015 production. Sell 10 percent at $13.10 against March 2015.

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. The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Midwest Market Solutions believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such.

Brian Hoops can be reached at (605) 660-1155.

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