Tuesday Feb 9, 2021 By: Eric Peterson
Corn closed nearly unchanged this morning with the March contract trading a seven cent range overnight. March corn saw a new contract high overnight at $5.70. December corn is around $4.60, just off the contract high of $4.65. The average ending stock estimate for today’s report is a decline to 1.363 billion bushels compare to the January’s 1.552 billion. Look for mostly higher trade today ahead of the WASDE report.
Soybeans continued the upward trend overnight with the March contract hitting $14.00. The USDA is expected to lower the U.S carryout from 140mb, carryout has been declining for months now. Demand has shown little to no signs of easing as exports and crush remain strong. The Feb WASDE report is expected to show a reduction to the ending stocks to 119 million bushels compared to January’s 140 million. Look for strength ahead of the report.
Spring wheat was slightly weaker overnight after a somewhat disappointing export data yesterday. Winterkill risk is the most dominant feature for wheat today as cold temperatures are raising concern. The WASDE report is expected to show very minor changes today. The average trade estimate for ending stocks is 834 million bushels basically unchanged from last month’s estimate of 836 million. Calls are for slightly weaker trade following the overnight action.
Compass contracts are a great way to market your new crop by pricing grain daily at a fixed higher futures price. Below are today’s closing bids for two types of compass contracts we offer. If you would like to make an offer or would like more information please give me a call at the office. (All compass contracts have a 48 hour probation period.)
|Price Builder Bonus||Daily Price Plus||Futures at 8:00am|
|Old Crop Premium||New Crop Target||Trigger Date|
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