SETTLEMENTS 11/16

Corn, beans and wheat all closed higher on the day. The general commodity strength appeared to be the main driving factor behind today's strength in the grains. In addition, the Nopa crush came in way above estimates. The Midwest still remains behind on harvest but there was good progress this past week, especially in the beans. Today's crop progress report had the beans 89% harvested and the corn was 54% harvested. The weather looks like it is going to keep many people out of the fields at the beginning of the week and some areas may be out for the entire week. However, we will have to wait and see how much rain the Midwest gets the next few days. From a fundamental standpoint, grain prices are at lofty levels. There is still room for debate on where exactly the crop will end up, but in general the US is going to have a solid crop and at this point the demand does not justify prices moving significantly higher from here. However, if the dollar continues to fall and money continues to flow into the market, prices could keep going higher. Even though this could happen we don't think producers should sit on large amounts of unsold grain. We recommend that producers use these rallies to get caught up on sales. If we get a significant setback we can look at some option strategies to re-own sales. Also, at the current input cost, Dec 10 corn is at very profitable levels for most producers. Producers should make sure they start making some sales at these levels.