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Profit Watch Commentary – Nov. 8, 2013

Whew! The report is out of the way. And, more importantly, it was a great ending to a loooong week. December corn closed 6 cents higher at $4.2675, and posted a key reversal in the process. January soybeans settled nearly 30 cents higher at $12.96. December wheat was 3 cents lower and finished the day near $6.50. For the week, December corn gained a mere penny, January soybean netted 44 cents and Chicago wheat fell 18 cents.

We were happy with today’s rally, but we are thinking the boys on Wall Street are feeling even better. The DOW finished up 168 points to close at a record 15,762 points. It is the 5th straight weekly gain for both the DOW and S&P 500.  The Labor Dept reported that we added about twice as many jobs in October as Wall Street expected. Some analysts felt the jobs numbers were shaky (or will [ ]

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Profit Watch Commentary – Nov. 1, 2013

Prices finished the week off on a poor note. Soybeans and wheat took the worst beating this week.November soybeans lost 34 cents and December wheat fell 23 cents.  December corn fell 12.75 cents lower, but it has been in a funk for some time.  Today, December futures carved out a fresh low of $4.2575. The fundsare holding onto a record short in corn, so perhaps we are nearing the bottom.  If you want some good news, get off LaSalle street and head over to Wall Street.  The DOW was up 70 points today and closed at 15,616. Unbelievable.

The S&P is also going up like gangbusters. The dollar has also taken off, but that isn’t good news for ag.  A stronger dollar makes our goods more expensive to buy. We are not surprised to see prices drift lower this harvest. Producers, in general, are pleasantly surprised [ ]

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Short-Dated New Crop Options

A new, cost-effective alternative to traditional options, short-dated new crop options expire much earlier, resulting in premiums that are lower because of the reduced time value.  The three contract months are May, July, and September with corn options using the underlying December contract and soybean options using the underlying November contract.  Perhaps one of the biggest benefits to using these new options is the ability to trade high impact events, such as USDA reports or a dramatic change in the weather outlook.

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