Morning Market Wire

Monday March 23, 2020                                               By: Eric Peterson

Corn traded two sided overnight with the May contract closing a fraction higher.  Corn was lower the majority of the night but found support from wheat and soybeans in the close.  Cron continues to trade well within last week’s trading range as economic uncertainty because of Covid-19 pushes sizable assets to the sidelines.  Look for mixed trade today as the U.S ethanol profitability will be a major influencer on price direction.    

Soybeans traded higher overnight with the May contract closing a penny off the overnight high of $8.76.  Support came overnight on continued talk of closures/slowdowns at some South America ports that could slow loading of soybeans and soymeal and disrupt global trade. 

Spring traded higher overnight with the May contract closing ten cents higher.  The wheat market seems the most stable as there is some worry about the global and U.S supply.  Chicago and KC futures see the higher levels in 30 days as Chicago wheat trades above the 30, 50 and 200 day moving averages.  Look for mostly higher trade today on increasing 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 PlusFutures at 8:00am
SX20 Oct2020$9.14$9.00$8.70
CZ20 Oct 2020$3.91$3.80$3.64
MWZ20 Dec2020$5.96$5.75$5.60

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 TargetFutures at 8:00am
0.146.00 MWZ2011/20/20
0.13$9.6010/23/20
0.134.00 CZ2011/20/20

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