Colorado Wheat Weekly Wire #230 [email protected]03/18/16 pg. 1 Hello Colorado Wheat. We know the future prices do not tell the whole story, as cash bids a farmer receives for his wheat are usually in dollars per bushel, and that price is usually derived from the formula: Flat price = futures price less basis, and in that regard, USA HRW farmers did not have a good week. When combined with a “reluctant to rally” futures market, and a freeze event which undoubtedly did some damage to the HRW crop amid a persistent low moisture environment, it was a rough week. Add to that some GMO issues, and it was even a rougher week than one might know. (I’m leaning towards a double yuk right now…) Working backwards… GMO issues are complex, and were made more complex this week by 2 events. Most wheat farmers also grow corn or soybeans, and the seeds have been treated for many reasons. One of the seed treatments involves using neonicotinoids, which beekeepers have blamed for the decrease in the honeybee population. Minnesota created a law in 2014 which has a system to allow beekeepers to be compensated by the state, which happened this week for the first time. The state ruled that 2 beekeepers were harmed by corn growers, even though the corn growers were not doing anything illegal. The article is linked here… http://www.startribune.com/in-win-for-beekeepers-state- links-insecticide-to-damaged-hives/372728941/ and while it’s tempting to say this is just a problem in Minnesota…this week we saw the US Senate block a bill that would have set national voluntary food label standards and prevented individual states from forming their own food labeling laws. Vermont has been at the front of this particular issue, although Maine and Connecticut have enacted similar laws. Unless a compromise bill can be passed quickly (doubtful), Vermont’s law will take effect July 1. Some food companies have already stated they will be changing their labels to comply with Vermont’s law. This article indicates the Colorado Farm Bureau was disappointed the US Senate was not able to reach a compromise… and I’m sure most farm groups felt the same way. http://blogs.denverpost.com/thespot/2016/03/17/125247/125247/ Most of Western Kansas and Eastern Colorado’s wheat was hurt Friday night or Saturday morning, enduring several hours of sub-freezing temperatures. The picture from Sumner County, KS went viral last night. Wheat is more advanced than normal, and cold temps undoubtedly damaged some wheat. Charts and discussions follow, with the goal of giving you useful information to help you with your business. My disclaimer remains the same: these are my sometimes rapidly changing opinions; the markets are quite treacherous; and past performance is no guarantee…dm
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Colorado Wheat Weekly Wire #230 danmaltby.riskmgmt ...files.ctctcdn.com/1cb1f89f401/743f6815-dc16-4990-8b35...usually in dollars per bushel, and that price is usually derived from
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