Wednesday March 18, 2020 By: Eric Peterson
Corn traded lower overnight continuing its downward spiral. Pressure came overnight on weakness in the energy markets and expectations for a big increase in corn acres this spring. May corn dipped below technical support of $3.40 with the next level at $3.30. Nearly all corn contracts hit new lows overnight. Look for continued weaker trade today.
Soybeans found strength on the front end overnight with the May contract closing four cents higher. The market was able to find support on the strength in the soymeal market and dryness in South America, despite a lack of demand for U.S soybeans. Argentina soils remain dry resulting in crop losses and reductions in overall production. Look for slightly higher trade today.
Spring traded higher overnight as it seems we have found a bottom for now. Mill and domestic demand remain steady as the recent board drop has slowed movement. The consumer panic to buy food as workers stay home may result in an uptick in baking and flour demand. Look for slightly higher trade today on bargain buying and firming basis values.
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 Bonus||Daily Price Plus||Futures at 8:00am|
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!
|Old Crop Premium||New Crop Target||Trigger Date|
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