Tuesday April 6, 2021 By: Eric Peterson
Corn was stronger overnight with the July contract closing just off the overnight high of $5.46. The December contract hit a new contract high of $4.93 yesterday and will likely test that level today. Crop progress showed corn at 2% planted, in line with average pace but slightly behind 3% expectations. Look for mostly higher trade today as both the July and December contracts have bounced back after the strong post report correction.
Soybeans were higher overnight with the July contract closing sixteen cents higher and just off the session high of $14.23. 120mb carryout is tight and intended acres appear to be too small to solve the balance sheet tightness. AgRural estimates Brazil’s soybean crop was 78% harvested as of last Thursday vs. 83% last year. Look for continued strength today.
Spring wheat was higher overnight following the strength in corn and soybeans. The market is acting as a follower for now but the underlying support is conditions are very dry in the Dakotas. USDA rated winter wheat conditions at 53% good to excellent, meeting market expectations but worse than the 62% rating from this time last year. Look for slightly higher trade today.
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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