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Seasonal price movement May 1 to Oct 1
In 13 of the last 20 years (1980-1999) or 65% of the time, Minneapolis September wheat futures declined an average of 42 cents per bushel from May 1 to August 1 (see chart). The Sept. wheat contract moved
higher an average of 43 cents in 7 years, or 35% of the time.
From May 1 to October 1 in the last 20 years (1980-1999), November soybean futures at the CBoT declined 14 of those years (70% of the time), an average of 83 cents per bushel. In only 6 of those 14
years (or 30% of the time) did the market move higher, by an average of 88 cents.
Dec. corn futures at the CboT also declined 14 out of the 20 years (70%) an average of 40 cents per bushel.
In only 6 years out of the last 20 (30%) did the market move higher from May 1 to Oct. 1, an average of 37 cents.
Moral of the story, says Ed Usset, a private grain market analysis who also works with the University of Minnesota: Get something sold in the spring, "if nothing more than to have balance in your
marketing," he says.
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November Soybeans at the CBOT
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|
Year
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1-May
|
1-Oct
|
Change
|
|
1980
|
6.45
|
8.12
|
1.67
|
|
1981
|
8.27
|
6.46
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(1.81)
|
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1982
|
6.78
|
5.29
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(1.50)
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1983
|
6.78
|
8.58
|
1.80
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1984
|
7.13
|
5.90
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(1.24)
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1985
|
6.06
|
5.14
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(0.93)
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1986
|
5.24
|
4.88
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(0.36)
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1987
|
5.34
|
5.45
|
0.11
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1988
|
7.14
|
8.17
|
1.04
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1989
|
7.24
|
5.77
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(1.47)
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1990
|
6.55
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6.05
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(0.51)
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1991
|
6.09
|
5.89
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(0.20)
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1992
|
6.05
|
5.33
|
(0.72)
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1993
|
5.96
|
6.18
|
0.22
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1994
|
6.28
|
5.38
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(0.90)
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1995
|
6.06
|
6.37
|
0.32
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1996
|
7.58
|
7.49
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(0.08)
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1997
|
6.96
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6.21
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(0.76)
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1998
|
6.17
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5.15
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(1.02)
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1999
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5.00
|
4.81
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(0.19)
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Avg.
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6.46
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6.13
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(0.33)
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14 years (70%) the market declined, an average of 83 cents per bushel. 6 years (30%) the market moved higher, an average of 88 cents.
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December Corn at the CBOT
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Year
|
1-May
|
1-Oct
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Change
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1980
|
2.95
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3.49
|
0.54
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1981
|
3.77
|
2.87
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(0.90)
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1982
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2.93
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2.20
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(0.73)
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1983
|
3.03
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3.53
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0.50
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1984
|
3.04
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2.78
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(0.26)
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1985
|
2.64
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2.26
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(0.39)
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1986
|
2.04
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1.77
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(0.27)
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1987
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1.87
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1.84
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(0.03)
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1988
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2.27
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2.95
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0.68
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1989
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2.64
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2.39
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(0.26)
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1990
|
2.70
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2.29
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(0.42)
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1991
|
2.53
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2.54
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0.01
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1992
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2.53
|
2.12
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(0.41)
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1993
|
2.43
|
2.43
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0.00
|
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1994
|
2.58
|
2.14
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(0.44)
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1995
|
2.63
|
3.11
|
0.48
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1996
|
3.33
|
2.90
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(0.44)
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1997
|
2.76
|
2.56
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(0.20)
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1998
|
2.62
|
2.05
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(0.58)
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1999
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2.31
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2.05
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(0.26)
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Avg
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2.68
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2.51
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(0.17)
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14 years (70%) the market declined, an average of 40 cents per bushel. 6 years (30%) the market moved higher, an average of 37 cents.
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September Wheat at the MGE
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Year
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1-May
|
1-Aug
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Change
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1980
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4.13
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4.68
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0.55
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1981
|
4.65
|
4.21
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(0.44)
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1982
|
4.05
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3.88
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(0.17)
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1983
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4.00
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4.08
|
0.09
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1984
|
3.90
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3.96
|
0.06
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1985
|
3.63
|
3.19
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(0.44)
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1986
|
2.92
|
2.68
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(0.25)
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1987
|
2.87
|
2.60
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(0.27)
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1988
|
3.13
|
4.12
|
0.99
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1989
|
4.19
|
3.93
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(0.26)
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1990
|
3.61
|
2.81
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(0.80)
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1991
|
2.95
|
2.88
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(0.07)
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1992
|
3.55
|
3.06
|
(0.49)
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1993
|
2.99
|
3.15
|
0.15
|
|
1994
|
3.34
|
3.34
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(0.00)
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1995
|
3.65
|
4.73
|
1.08
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1996
|
5.93
|
4.70
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(1.23)
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1997
|
4.39
|
3.92
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(0.48)
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1998
|
3.61
|
3.08
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(0.53)
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1999
|
3.33
|
3.44
|
0.11
|
|
Avg
|
3.74
|
3.62
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(0.12)
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13 years (65%) the market declined, an average of 42 cents per bushel. 7 years (35%) the market moved higher, an average of 43 cents.
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