Tuesday February 18, 2020 By: Eric Peterson
Corn closed two cents higher this morning with the March contract trading a four cent range. The Phase One Trade Agreement has gone into effect. China says they will live up to their commitment to increase their purchases of U.S ag goods. Look for limited gains as the South American weather conditions look to be mostly favorable for the corn crop.
Soybeans saw two sided trade overnight with the March contract closing a penny lower. The market continues to await on any updates on the coronavirus as well as any buying action out of China. South American weather conditions continue to be mostly favorable, although there are areas that have issues of dryness. Brazil is said to be on pace for harvesting a record soybean crop this year.
Spring wheat closed eight cents higher this morning with the March contract closing five cents off the overnight high. Minneapolis wheat followed the strength in the KC and Chicago markets. Heavy rains in parts of England and the EU which has caused flooding is also providing support. Look for mostly 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.)
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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