Thursday, May 24, 2012
Hello from RUC!
This week is one that will holds vivid memories for me. In 2008, our main grain facility burned to the ground. It was a very hectic year & one I don’t want to repeat. But now we have a new facility and one our patron should be very happy with.
Rain! We are the short end! While some areas in our region are getting some timely, we have been on the short-end-of-the-stick all spring! While we enjoyed the rain-free planting season, a nice 1- 1 ½ inch rain would help our emerging crops.
Reynolds United employees will be enjoying a long Memorial Day weekend as RUC will be closed Saturday- Monday. The Grain futures will also be closed over the long weekend resuming 7:00 PM Monday night.
Speaking of the grain futures, the “New” trading hours started last Sunday. They open @ 5 PM every day and close @ 2:00 PM. Traders and grain industry seem to have accepted the new hours but it’s different to have the market trading all morning. Talk is that the pit will eventually close at 2PM along with the electronic platform. There is also talk that the pit trade may open up around 7:15-7:30AM. On USDA report days there may be a 1 hour suspension of trade, allowing the trade to sift through the numbers for a brief period before trading resumes for the day. The last rumor is that USDA will release their reports @ 3:00 PM. Prior to 1994, USDA released their reports @ 3:00 PM. I think that’s a great idea.
Monday, USDA came out with their weekly progress/crop condition report. As of Sunday, the corn crop is 96% seeded which compares to 74% last year and the 5-year average of 81%. North Dakota is 94% complete vs. 37% last year. This week is the 1st week for corn crop conditions. Corn debuted @ 77% good/excellent. Last year it was 66% g/e.In North Dakota corn ratings was 88% G/E.
Winter wheat condition in the good/excellent rating decreased 2% from last week to 58% and vs. last year @ 32%. Kansas dropped another 9% to 43%. That’s a 17% decline in ratings in 2 weeks. Winter Wheat is 3% harvested which compares to 1% last year Texas is 11% complete while Oklahoma is 14% done.
Spring wheat planting is @ 99% which compares to 78% in 2011. USDA has North Dakota seeding @ 99% complete vs. 29% last year. Ratings for spring wheat are at 74%. Last year it was 68%. North Dakota’s good/excellent was pegged @ 87%.
Soybeans are 76% seeded compared to 36% last year & 5-year avg of 42%. In North Dakota, 84% of the soybeans are seeded vs. 8% last year.
One of the “rumors” that preempted the fall in the soybean market this week was that China had cancelled some soybean sales. While it’s very hard to confirm any true facts on foreign dealings. If this was the case, probably was probably not more than a few cargos by a presumed minor customer and soybeans has been re-sold to another Chinese or Asian end user. If true, net impact market is minimal. Chinese buyers are likely required to deposit earnest money for performance reasons. Roll the sale ahead, yes; cancel, possible; default, never again. Market suppliers still frightfully remember 2004, 2008…and typically have taken preemptive protective measures at the time of trade with Chinese buyers with shaky balance sheets.
You have to love our weather (other than no rain!) 95* on day ..60* the next.. That’s what concerns me about averages. What do they mean? To get to our average rainfall for 2012 we are going to get a lot of rain in a short period of time.
Our markets this week have been a bit volatile is an understatement. Funds in, fund out. Rain, no rain. Export sale, no export sale. Anyway. Wheat today closed @ $7.66, up 9 cents this week. New Crop wheat closed @ $7.21, up 21 cents. Corn is @ $5.62, down $.43. New crop corn is @ $4.69, up .11. Soybeans @ $13.11, down $.57 for the week. New Crop soybeans are @ $11.87, down .30. Confused on markets direction? I am along with most people in the industry.
Sometimes, no… all the time, there are things in our lives more important than work. Please be thankful and take the time appreciate what you have.
In closing this “Ramble”, I’ve given you a few quotes to think about, enjoy……….
Work hard at what you like to do and try to overcome all obstacles
Laugh at your mistakes and praise yourself for learning from them
Pick some flowers and appreciate the beauty of nature
Say hello to strangers and enjoy the people you know
Don't be afraid to show your emotions laughing and crying make you feel better
Love your friends and family with your entire being they are the most important part of your life
Feel the calmness on a quiet sunny day
Find a rainbow and live your world of dreams always remember life is better than it seems
Have a great long Memorial weekend.
If God brings you to it he'll bring you through it.............