Welcome

Good Afternoon: July 27, 2016

Wheat closed mixed for the day. There has been a strong move in basis levels over the past month with futures breaking and farmers unwilling to sell as values are mostly below break-evens.  Basis levels took a dump and dropped today. This week basis for SWW ranged from a +1.08 down to a +.96 WU16. Today 2 million bu ofd SWW  traded even though the board was neutral. Remember: price = futures + basis. Well today the flat price went down and the futures stayed even so it was the basis that took a hit lower. Question is- will the drop in the flat price stop farmer selling again and see a wider basis in the few days?

Thinking:  Please note below that we unwound the final bu of our proven yield for our fictitious 100k bu farm. This year we averaged $5.84 /bu making us .14/bu over COP plus bonus bu. 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). Remember we started selling under our COP in April so utilized both Puts and HTA’s as the market allowed to add value AND we have 20,400 bonus bu left to sell.

SALES:

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 ¼ @ 4.14 ¾; KC up ¼ @ 4.12 ½; MINNY up 1¾ @ 4.88¼.            

Portland Flat Price: SW @ 5.10(.95), DNS @ 6.03(1.15), HRW @ 5.17(1.05), BLY @ 135. 

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

BIDS LAST UPDATED: JULY 27, 2016 2:09 PM
Soft White Wheat
Name Delivery Start Cash Price Notes
SWW

View all cash prices...
Quotes retrieved on July 27, 2016, 11:39:59 PM CDT
Club Wheat Bids
Name Delivery Start Cash Price Notes

View all cash prices...
Quotes retrieved on July 27, 2016, 11:39:59 PM CDT
Cash Bids (Subject- Call for Current Price)
Delivery Start Cash Price Basis Futures Price Basis Month Notes
HRW
HRS
HWW
BLY

View all cash prices...
Quotes retrieved on July 27, 2016, 11:39:59 PM CDT
Please Call for Current Pulse Bids
Name Cash Price Notes

Quotes retrieved on July 27, 2016, 11:39:59 PM CDT
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 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

Wheat -

Wheat futures are trading mostly 1 to 5 cents higher this morning. They settled 10 to 11 1/4 cents lower in KC and MPLS, and 13 to 14 1/4 cents

Wheat -

Wheat futures settled 10 to 11 1/4 cents lower in KC and MPLS, and 13 to 14 1/4 cents lower in CHI on Tuesday. The potential for a record Russian

Wheat -

Wheat futures are trading mostly 7 to 9 3/4 cents lower at midday, after trading mostly 2 to 5 cents lower this morning. Just 17% of the US winter

Full commentary...
Grain Market Hours

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

                                       2:00 PM - 4:00 PM PST

                       Friday:    
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 27, 2016, 11:39:59 PM CDT
Weather

Genesee, Idaho (83832)

Current Conditions: Clear
Temperature: 86°F Dew point: 50°F
Humidity: 29% Pressure: 29.96 in. Hg
Wind: 0 mph From:

Forecast

Wednesday

Hi: 91°
Lo: 62°
Thursday

Hi: 92°
Lo: 62°
Friday

Hi: 94°
Lo: 58°
Saturday

Hi: 89°
Lo: 54°
Sunday

Hi: 81°
Lo: 52°

Zip Code:

© 2016 Freese-Notis Weather

Ag Headlines
InsideFutures Commentary

More news...

 Colfax

  Genesee
North 204 Main Street
  117 West Chestnut
Colfax, WA 99111
  Genesee, ID 83832
509-397-4381   208-285-1141
     
                                      Toll Free: 866-986-2008