October 27, 2023

Fall harvest slowed way down the past couple of days with foggy, cold, and wet weather. Not minding that too much here at Farmers Coop, as we are waiting for a corn train to load next week and still moving wheat out of the way of corn in the elevators.

Millet harvest is all but over. It was the biggest number of bushels taken by Farmers Coop in the past 20 years. Prices reflect the supply. Buyers are not having trouble getting what they need today. Many elevators pulled their bids. We haven’t had to do that yet, but it could happen.

HRW can’t seem to find a bottom as the price continues to grind lower. Below are the World Wheat FOB Prices. That green line on the bottom is the Russian Black Sea wheat. Cheapest in the world and it is what the US is competing with.

The global stocks to use (below) is really putting a lid on any money flowing into the wheat market.

US the southern plains have received some decent rains that have led to perceived good HRW conditions going into this winter. Kind of depressing showing the chart.

Hard to have any slam-dunk marketing opportunities on this old crop wheat. One idea we have looked at is Minimum Price (MinPx) and Minimum/Maximum Price (Min/MaxPx). KC May 660 calls around 50¢ and 660/760 min/max around 30¢. This would stop storage, generate cash, and still keep you in the market if we get a rally.

We really want to be looking forward to next year's crop too. At the money Min/MaxPX using Sept KC cost indications are around 25¢. This would net you a $5.60 cash floor with a $1.00 worth of upside potential.

We’ve recently rolled out our App here at Famers Coop! It’s a great way to check bids, look at futures, and stay current on the weather. You can also review contracts and e-sign them directly from the App. To download, click here. There is also the desktop version that you can access. If you have questions, call us, or stop by anytime, we are happy to help!

Farmers Coop’s Grain Team is available for helping develop marketing plans for producers. Call the Hemingford Grain line at 308-487-3325 to discuss current markets and strategies.