Morning Market Wire 3/20

Friday March 20, 2020                                               By: Eric Peterson

Corn saw some follow through strength overnight as the May contract is now eighteen cents removed from the contract low.  However, it does not look like fundamentals are strong enough to push it much higher as a 1.9bb carryout is likely growing.  Look for mostly higher trade today on strength in the energy markets and weakness in the U.S dollar. 

Soybeans closed eleven cents higher this morning with the May contract closing two cents off the overnight high.  However, soybeans are only three cents higher for the week.  Soybeans continue to move higher on possible closures at South American ports and ideas that U.S acres will be down.  Look for mostly higher trade today on hopes that China will begin buying U.S soybeans.    

Spring traded higher overnight with the May contract closing at the overnight high of $5.25.  Strength came overnight on news that the U.S may sell a few cargoes of wheat to China. Canada’s 20/21 all wheat crop is estimated at 33.5mmt.  This compares to the USDA 2019/2020 estimate at 32.25mmt.  Look for higher trade today on improving demand. 

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
SX20 Oct20$9.09$9.00$8.62
CZ20 Oct 20$3.93$3.80$3.67
MWZ20 Dec20$5.92$5.85$5.55

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 PremiumNew Crop Target Trigger Date
0.146.00 MWZ2011/20/2020
0.139.60 SX2010/23/2020
0.134.00 CZ2011/20/2020

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