Thursday March 12, 2020 By: Eric Peterson
Corn closed six cents lower this morning at the session low of $3.68. The spread of coronavirus and its economic impact remains the story. Trump announced a 30 day ban on travel from Europe to the U.S and tried to assure the market and the financial system is solid. Look for corn to open four to five cents lower following the pressure seen in the other markets.
Soybeans are getting hit hard yet again with the May contract closing at overnight low of $8.53. The uncertainty of the effect coronavirus will have on global economics remains the key driver. Brazil is in harvest and may have a record production is also pressuring the market. Look for continued weakness today as the market remains in a panic.
Spring wheat continues its weaker trade with the Minneapolis March contract getting under $5.00. Minneapolis and Kansas City markets are following Chicago’s lead with little additional news to trigger much excitement. Look for lower trade today as the market tests key support levels.
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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