Morning Market Wire

Tuesday May 4, 2021                                               By: Eric Peterson

Corn traded higher overnight with the July contract closing six cents off the overnight high.  Strength came on tightening supplies and ongoing dryness in Brazil.  Crop progress was reported at 49% complete, compared to 17% last week, 48% last year and a five year average of 36%.  Look for continued strength today on the dry weather in South America.        

Soybeans saw double digit gains this morning after a slow start last night.  However, the market is still well off contract highs.  Support came overnight from ongoing firmness in the vegoil markets.  Crop progress was reported last night at 24% complete, compared to 8% last week, 21% last year and 11% five year average.  Look for continued strength today.          

Spring wheat higher overnight following the strength in the corn market.  The USDA pegged spring wheat planting at 49% complete well ahead of last year’s pace of 27% and the five year average of 32%.  Look for continued strength today as dryness in the Northern Plains remains a major concern.    

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 BonusDaily Price PlusFutures at 8:00am
SX21 Oct21$14.90$14.25$13.54
CZ21 Oct21$6.30$5.95$5.69
MWZ21 Dec21$8.40$8.05$7.68
Old Crop PremiumNew Crop TargetTrigger Date
0.378.60 MWZ2111/19/21
0.2815.80 SX2110/22/21
0.306.40 CZ2111/19/21

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