Implementation of Variable Price Limits for Grain and Oilseed Contracts

Effective Wednesday, April 30, 2014 for trade date Thursday, May 1, 2014, the Board of Trade of the City of Chicago, Inc. (CBOT or Exchange) will apply variable price limits for grain and oilseed futures as described below.  Also effective at the same time, the Exchange will remove price limits for all grain and oilseed options.  These amendments were approved by the Commodity Futures Trading Commission on April 18, 2014.

The new futures price limits are shown in the table below and will remain in effect until the first trading day in November 2014.  There shall be no price limits on the current month contract on or after the second business day preceding the first day of the delivery month.  All mini-sized grain and oilseed futures will have the same daily price limits as their corresponding standard-sized futures.

The first reset date would be the first trading day in May based on the following: Daily settlement prices are collected for the July contracts for each of the CBOT grain and oilseed futures products over 45 consecutive trading days before and on the business day prior to April 16th.  Average prices for each contract will be calculated based on the collected settlement prices and then multiplied by seven percent.  The resulting number would be rounded to the nearest 5 cents/bushel for Corn, Soybeans, CBOT SRW Wheat, KC HRW Wheat, and Oat futures; $5/ton for Soybean Meal futures; 0.5 cents/pound for Soybean Oil futures; and $0.05/cwt for Rough Rice futures to determine the new initial price limits for futures.  The second reset date would be the first trading day in November.  The November price limit reset will be determined in a manner similar to the first reset in May.  The only difference would be that December contracts (November contracts for Soybeans and Rough Rice futures) will be observed over 45 consecutive trading days before and on the business day prior to October 16th.

 

Commodity	Current Initial Price Limit	New Initial Price Limit (Effective 5/1/2014)	New Expanded Price Limit (Effective 5/1/2014)
Corn	$0.40/bushel	$0.35/bushel	$0.55/bushel
Soybeans	$0.70/bushel	$1.00/bushel	$1.50/bushel
CBOT Wheat	$0.60/bushel	$0.45/bushel	$0.70/bushel
KC Wheat	$0.60/bushel	$0.50/bushel	$0.75/bushel
Soybean Oil	$0.025/pound	$0.03/pound	$0.045/pound
Soybean Meal	$20/ton	$30/ton	$45/ton
Oats	$0.20/bushel	$0.25/bushel	$0.40/bushel
Rough Rice	$0.50/cwt	$1.10/cwt	$1.65/cwt

Iowa, Wisconsin And Minnesota Final Planting Dates

USDA's Risk Management Agency has published the final planting dates for 2014 for Iowa, Wisconsin and Minnesota. 
For corn, most corn for grain must be planted by May 31st.  A few northern Wisconsin and Minnesota counties are May 25th.  Silage corn must be planted by June 5th in the three states.
Soybeans must be planted by June 10th in Minnesota and the northern half of Wisconsin, June 15h in southern Wisconsin and Iowa. 
Oats must be planted by April 30th in Iowa and from May 15th to June 5th in Wisconsin and Minnesota.
Crop insurance is sold and delivered solely through private crop insurance agents.  Contact a local crop insurance agent for more information.
Complete county-by-county and crop-specific dates are available here:  http://www.rma.usda.gov/fields/mn_rso/2014/final/index.html#planting

Jason Dubberke

Grain Merchandiser
Fredericksburg   
Cell (641) 485 4069
Office (563) 237 5324
jdubberke@fburgcoop.com

Notice To Customers

Governor Terry E. Branstad today signed a proclamation to allow the transportation of overweight loads of soybeans, corn, hay, straw, silage and stover.  The proclamation takes effect today, September 27, 2013, and expires at midnight on November 25, 2013.

This proclamation is intended to allow vehicles transporting these commodities to be overweight, not exceeding 90,000 pounds gross weight, without a permit, but only for the duration of this proclamation.  This action is intended to allow loads transported on all highways within Iowa, excluding the interstate system, and those which do not exceed a maximum of 90,000 pounds gross weight, do not exceed the maximum axle weigh limit determined under the nonprimary highway maximum gross weight table in Iowa code 321.463(5)(b), by more than twelve and one-half percent (12.5%), do not exceed the legal maximum axle weight limit of 20,000 pounds, and comply with posted limits on roads and bridges.

The Iowa Department of Transportation is directed to monitor the operation of this proclamation to assure the public's safety and facilitate the movement of the trucks involved.

For more information visit www.governor.iowa.gov

Green Immature Beans

Some of the first beans are starting to trickle into FFC this week as highs in the 80s dry beans down rapidly.  So I want to make everyone aware of the new “green immature bean” discount that we will be implementing this fall. 

Discount Schedule

Green Immature                                              Discount Per Bushel

1.0   to 5.0%         $0.01

5.1 to 10.0%        $0.02

10.1 to 15%         $0.04

15.1 to 20.0%     $0.05

This discount schedule reflects the same discount schedule that Cargill is implementing.

FSA September 2013 Prevent Plant Numbers

Corn 3.572 million acres

Beans 1.687 million acres

Wheat 1.977 million acres

Total = 7.236 million acres nationally

Notice to Customers

Record rainfall this spring caused record unplanted acres as seen above.  Thus, more treated seed than normal was left in the hands of producers and the industry post planting this year.  Consequently some of this seed has shown up at elevators and processors across the country, which has been met with harsh penalties.  Therefore it is critical that producers and the rest of the supply chain follow industry guidelines to ensure a safe supply of grains and oilseeds, and maintain our reputation as a supplier of high quality agricultural products.

IT IS AGAINST THE LAW FOR TREATED SEEDS TO BE MIXED IN THE GRAIN

PROCESSORS AND EXPORT MARKETS HAVE A ZERO TOLERANCE FOR TREATED SEED MIXED IN GRAIN

THE STATE OF IOWA WILL QUARANTINE OUR STORAGE BIN WITH CONTAIMINATED TREATED SEED MIXED IN THE GRAIN

SEVERE PENALTIES AND ADDITIONAL COSTS WILL BE ASSESSED TO THE FARMER RESPONSIBLE FOR CONTAMINATING THE GRAIN WITH TREATED SEED