Tuesday February 11, 2020 By: Eric Peterson
Corn traded weaker overnight, trading above support levels as the market awaits for the USDA report. The USDA will release the February WASDE report today at 11:00am. The market is expecting ending stocks to decrease to 1.864 billion bushels vs. 1.892 billion bushels in January. Look for a weaker market as prices hang around the low end of the range, waiting for supportive news to come.
Soybeans were mixed overnight with the March contract trading a five cent range. The market is still trying to figure out how the coronavirus is going to impact the Chinese demand. As of now, they are still buying soybeans, but mostly from Brazil. There are now 1,016 people that have passed away due to the coronavirus with 42,638 cases confirmed. 99% of the cases are in China and remains an emergency in that country. Look for limited upside today we continue to lack a strong export market.
Spring wheat closed nearly unchanged this morning as the market awaits fresh news. Today’s WASDE report is not expected to show much changes from January’s report as the market is expecting all wheat ending stocks to be at 954 million bushels vs. 965 million bushels in January. Look for slightly stronger trade as good international business should provide support to the market.
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.)
Below is the third compass contract we offer which pays you a premium for your old crop for potentially selling the same amount of new crop. You only sell the new crop if the futures are equal to or greater than the target price on the trigger date. There are many different premiums and target prices available. Please call for more info!
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