Morning Market Wire

Wednesday May 25, 2022                                               By: Eric Peterson

Corn traded lower overnight as the market continues to see a modest pull back as July corn breaches its 50 day moving average of $7.68 and sees its lowest price since early April.  July corn has been below its 50 day moving average 5 times since October.  Look for lower trade today on improving weather, fund liquidation, and reports that Russia may allow food exports from Ukraine. 

Soybeans saw two sided trade which turned lower this morning.  The November contract is attempting to stay above $15.00 with technical support below at the 50 day moving average of $14.89.  China continues to have lockdowns due to Covid.  The lockdowns are reported to have slowed soyoil consumption in China.   

Spring wheat saw follow through selling overnight with the July contract closing nearly thirty cents lower.  July wheat has retraced 50% of the move higher of May, but still about $2.00 above in early March.  Despite recent losses, the price trend remains higher as weather is a concern in the winter wheat belt and planting progress in the Northern Plains is stalled.  

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
SX22 Oct22$15.60$15.30$15.01
CZ22 Oct22$7.75$7.40$7.10
MWZ22 Dec22$13.30$13.00$12.43
Old Crop PremiumNew Crop TargetTrigger Date
0.4515.00 MWZ2211/23/22
0.3217.00 SX2210/21/22
0.308.00 CZ2211/25/22

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