Friday February 21, 2020 By: Eric Peterson
Corn closed a penny higher this morning as the market seems to be shrugging off coronavirus concerns with corn remaining mostly rangebound. The March contract continues to trade on both sides of $3.80. The USDA Ag Forum projects U.S 2020 corn acreage at 94.0 million acres. This compares to 89.7 million acres planted last year. Look for weaker trade today as the focus is beginning to turn to 2020 planted acres.
Soybeans saw two sided trade overnight with the March contract seeing a five cent range. Weakness continues to come from a lack of fresh supportive news, as well as no sign of China stepping up to buy U.S goods. The USDA outlook forum estimated 2020 soybean plantings at 85.0 million acres vs. the average estimate of 84.6 million acres. This compares to 76.1 million acres in 2019.
Spring wheat closed two cents higher this morning, with March Minneapolis closing just off the overnight high of $5.33. USDA’s Outlook Forum estimated wheat plantings for 2020 at 45.0 million acres vs. 45.2 million acres a year ago. Wheat ending stocks were pegged at 777 million bushels vs 940 million bushels in 19/20. Look for higher trade today as the ending stock projections are lending support.
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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