Good Afternoon: July 28, 2016

Wheat closed lower today for the 3rd day in a row.  We are now at 10 year lows, last seen in September ’06.  To recap our loss on the basis levels on SWW – Exporters purchased 2 million bushels yesterday to cover in some of their short position.  Producers in the earlier harvested areas of the state took advantage of their high yields and sold their crop protecting a decent per acre income.

Negatives weighing on wheat today: 

  • Lack of export business
  • 3rd day of the spring wheat tour in North Dakota showed better than average yields again
  • Int’l Grain Conference came out with huge numbers for World Wheat.  They increased it 6 MMT – up to 735 MMT
  • Egypt bought more cheap Russian and Romanian wheat – U.S. not competitive

That is a lot to fight against during harvest.  The only thing us Bulls have in our corner is the record short position of the Managed Money Fund traders.  Right now they look like they are more like kicking us when we are down versus fighting for us and moving out of their short positions.  I guess the question we need to ask is . . . . . . Are they wrong when they are reading all of this bearish fundamental news like we are?

Strategies1) look for a technical retracement of 30-50 cents in the futures market.  At that time sell cash or purchase put options to protect the next push lower.  2) If the futures market continues its decline, wait for the bottom, just below 4.00 and purchase cheap call options for the retracement to the upside to add another 10-20 cents to your sale.


On 4/20 we locked 10% of our proven yield with a Sept ’16 Futures lock at 5.20

On 4/20 we locked 10% of our proven yield with a Sept ’17 Futures lock at 5.60

On 4/21 we purchased WN16 5.00 put options on remaining 90% of crop at .20 ¼ for price protection.

On 5/11 we sold 15% WN16 5.00 put options @ (.46 ¼ - .20 ¼) = .26 net. Sold cash 5.35. Leaves us with 75% left to price. 75% of crop protected put options.

On 5/27 we sold 10% cash @ 5.55 Oct delivery. Will unwind puts when market breaks. This leaves 65% to price.

On 5/27 we rolled the remaining 5.00 July puts to Sept. Sold the WN puts @ .23¼ and bot WU5.00 puts   @ .28½ for a roll price of [-.0525]. To finance the put we sold an out of the money 5.50 calls for .085 so we had a net trade of + .03¼. We are exposed in the event the market goes crazy up – to counter this we have a stop loss order to buy the call back when the call is worth .11¾. This allows us 2 months more protection for 0 money.

On 5/31 we sold 10% of puts covering our 5/27 cash sale. (.36-.28½ =.07½) 5.55 + .07½ = 5.62¼. We still have the call and will unwind when market rebounds.

On 6/2 we sold 5% cash @ 5.45 Aug delivery. Will unwind puts when market breaks. This leaves 60% to price.

On 6/6 we sold 10% cash @ 5.60 Aug delivery. Will unwind puts when market breaks. This leaves 50% to price.

On 6/6 we locked in 10% of our proven yield with a Sept ’17 Futures lock at 5.75¾. This leaves us 20% sold for our ‘17 crop

On 6/7 per our strategy on 5/27 we had a stop loss on our call option and it was exercised leaving us at a net 0. (refer to summary on 5/27)

On 6/8 we sold our 5.00 WU puts for .16. for net of -.04 (.16-.20 =-.04). We bot WU5.30 puts for .30 for a net price of .34 bu (this includes our 4 cent loss). So in essence we bot .30 worth of coverage for a total of .14 cents more.

On 6/16 we sold 25% WU16 5.30 put options @ (.54 - .34) = .20 net.  This makes our sales on 5/27 (5.55 +.20 =5.75), 6/2 (5.45 +.20 =5.65), 6/6 (5.60 +.20=5.80). 

On 6/29 we set the basis of (.72) on our futures only contracts. 5.20(WU16 +.72 (basis) for a $5.92 price at harvest - gives us 5.12 off the combine.

On 7/8 we are comfortable that there will be an increase in yields so we sold another 10% cash @ 5.22 Aug delivery. We sold back the puts .97 bu. this gives us 5.22 +.97 -.34 (cost of puts) equals $5.85 net sales. This leaves 40% left to price.

On 7/26 we sold the last 40% of our proven yield @ 5.18. Sold balance of our 5.30 puts @ (1.16 - .34= .82.) (5.18 +.82 ) = a net $6.00 sale. Harvest is over for us as we realized a 100 bu yield allowing for bonus bu of 20,400 bu (17 bpa x 1200 acre). This year we averaged $5.84 /bu making us .14/bu  over COP plus bonus bu. Remember we started selling under our COP in April so utilized both Puts and HTA’s as the market allowed to add value.

Sept Futures closed: CHI down 4 ½ @ 4.10 ¼ ; KC down 3 ½ @ 4.09; MINNY down 1 ½ @ 4.86 ¾             

Portland Flat Price: SW @ 5.05(.95), DNS @ 6.02(1.15), HRW @ 5.14(1.05), BLY @ 135. 

Will have our next marketing meeting September 7, 7:00 @ University Inn, Best Western in Moscow

Soft White Wheat
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Quotes retrieved on July 29, 2016, 05:08:28 AM CDT
Club Wheat Bids
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Cash Bids (Subject- Call for Current Price)
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Please Call for Current Pulse Bids
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PNW Specialty Foods / Mighty Mustard

Practical Farmers of Iowa Release Midwest Cover Crops Trial Report

Practical Farmers of Iowa has released their 2014-15 Research Trial Report, and it shows Mighty Mustard® Kodiak (brown mustard) as being a very strong performer in both biomass production and weed/pathogen suppresion among other cover crops in the midwest growing regions.

Click HERE for a brief overview.

Click HERE to read the full report. 

USDA Releases New Cover Crop Comparison Chart

The USDA has released a new, comprehensive Cover Crop Comparison Chart.  This chart has a ton of excellent information about the benefits and drawbacks of different cover crops. It also should be pointed out the mustards are shown ina very positive light!  Go Mighty Mustard!

Click HERE to view the chart.

Moscow Food Co-op Wants You to Get To Know: Garbanzos

Fun & delicious facts about garbanzo beans from our friends at Moscow Food Co-op, courtesy of their Beet Box Blog.

Click here to read the article. 

Sunrise Red Lentils featured “Harvest of the Month” for Schools

We're honored that our PNW Co-op Sunrise Red Lentils will be featured on Spokane Public School’s menus as April's "Harvest of the Month." Supporting the National Farm to School Network is one of our core missions, so we're grateful for this opportunity to partner with the Spokane School District. Big thanks to our friends at LINC Foods for bringing our local legumes to Spokane students!

To learn more, watch this video.

Mighty Mustard Pacific Gold & IdaGold Meet Certified Seed Standards

We are pleased to announce that the Mighty Mustard Pacific Gold and IdaGold have passed Certified Seed standards and are being shipped to distributors across the country. Please visit the Where To Buy page on MightyMustard.com for the most up-to-date information regarding availability.

PNW Co-op Specialty Foods NEW Expanded "Where To Buy" Section 

We have revamped our "Where To Buy " page on www.EatRealPNW.com ! You can find all the stores across the country where your PNW Co-op Specialty Foods are sold across the country (and even in British Columbia, Canada)!  You can also go directly to the PNW Co-op Specialty Foods page by following the link to www.EatRealPNW.com!


Brugler Commentary
Wheat -

Wheat futures ended the Thursday trade 1 1/2 to 5 1/2 cents lower, with the HRS market holding the firmest. This morning’s weekly USDA Export

Wheat -

Wheat futures are trading slightly higher at midday. The USDA Export Sales report published early this morning showed that 506,108 MT of US wheat

Wheat -

Wheat futures are mostly 3 to 4 cents higher this morning. Traders are looking for the USDA weekly Export Sales report to show 400,000 to 600,000 MT

Wheat -

Wheat futures settled within 1 3/4 cents on either side of even money on Wednesday, with the SRW market slightly lower, but the HRS market slightly

Wheat -

Wheat futures are slightly higher at midday. The potential for a record Russian wheat production is pressuring the US wheat markets as it would

Full commentary...
Grain Market Hours

Monday – Thursday:    8:30 AM - 11:15 AM PST 

                                       2:00 PM - 4:00 PM PST

8:30 AM - 11:15 AM PST

 *Markets Closed on Holidays*

*No Protein Wheats During Afternoon Market Hours*
(HWW / HRW / DNS) 


Hard Red Spring Wheat (HRS / DNS)
Protein Scale: +5/-10 each 1/4 from 14%

Hard Red Winter Wheat (HRW)
Protein Scale: +10/-20 each 1/2 from 11.5%

Hard White Wheat (HWW)
Protein Scale: +0/-10 each 1/2 from 12%

Futures Trading Hours

Monday – Friday:    5:45 AM - 6:30 AM PST (Break)

                                  6:30 AM - 11:15 AM PST (Trading)

Sunday – Friday:     
5:00 PM - 5:45 AM PST (Trading)


Futures Markets
Quotes retrieved on July 29, 2016, 05:08:28 AM CDT

Genesee, Idaho (83832)

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