Monday March 16, 2020 By: Eric Peterson
Corn traded lower overnight with the May contract closing at the session low of $3.60. May corn broke though the recent technical support level of $3.65. Prices continue to drop on weakness in the outside markets, despite recent demand. Brazil’s second corn crop suffers from dryness in central and south central areas. Look for weaker trade today on continues weakness in outside markets.
Soybeans hit a new contract low overnight but managed to close four cents off the low. May soybeans hit its lowest level since September 2019. The crush market has rebounded lately as the bushels crushed for February were strong. NOPA reported a new record for the month of February at 164.959 million bushels. Look for lower trade on South America harvest and economic uncertainty.
Spring traded lower overnight with the May contract trading a six cent range. Wheat prices were lower on continued fears from the spread of the Coronavirus and the fate of the of the global economy. Major wheat exporters in the world see ending stocks shrink to their lowest level since 2013/14. Stocks/use ratio is also expected to be at 14.22% the smallest since 2007/08. Look for lower trade today on weakness in outside markets.
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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