Thursday March 19, 2020 By: Eric Peterson
Corn closed five cents higher this morning after yesterday’s selloff. May corn has stayed above the technical support level of $3.30. The last time crude was around $20/barrel, corn prices were around $2.00 -$2.50. Look for higher trade today on a rebound in the oil sector, while virus concerns will limit upside potential.
Soybeans traded higher overnight with the May contract closing six cents off the overnight high of $8.45. May soybeans saw a wide twenty cent range overnight. Strength is coming from hopes of increased demand for meal and logistical issues in Brazil ports. Additions support is stemming from ideas that U.S soybean acres will be down. Look for mostly higher trade today.
Spring traded slightly higher overnight with the May contract closing three cents higher. Minneapolis wheat seems to be following the strength in the Kansas City and Chicago markets. Kansas City wheat is now 40 cents off recent lows. Support comes from increased demand and the possibility of renewed Chinese business. Look for mostly 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 Bonus||Daily Price Plus||Futures at 8:00am|
|MWZ20 Dec 20||$5.77||$5.65||$5.45|
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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