we have lift off!!

[cottonpicken]

anybody watching the grains take off.
corn and wheat are up over 4%

[charliep]

I also note the PRO today. High quality CWRS wheat down and 3CWRS/other classes up. Durum generally up with lower grades up the most. Feed grains and malt barley up substantially.

The changes in spreads and the fact FPC spreads are based off initial payments has significant implications for the grades/proteins you apply against these contracts. Apply your first deliveries of high protein 1/2 CWRS to the fixed price to lock the initial payment spread. If you are bullish, buy futures or calls. DO NOT APPLY 3CWRS AND LOWER AGAINST THE CONTRACT (unless you like to give money away).

The all at once increase in feed grains is interesting to say the least. In some sense not surprising but still a big jump. Even within the current system, it is too bad there are not cash pricing alternatives that would reflect export feedgrain values to farmers so they can compare to domestic values.

[wd9]

Yes Charlie, it is too bad.

Notice today canola went up because crude oil/energy did? Interesting new trend emerging.

[charliep]

I agree. Nice to be potentially in a world where crop shortages are not the driver (realizing there are some weather problems) of higher prices but rather a new source of demand/higher consumption.

I woul be cautious about letting all this good news go to my head. A lot of hype out there right now. Using rallies to price some (keep the banker happy/food on the table) is still a recommended course of action.

[cottonpicken]

My opinion is that the big money is finally moving into the ag sector. ag commodities havent had their run up like the others.I think it is no coincidence that oil has gone down and the grains are going up.