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Corn traded lower overnight as the December contact hits its contract low from yesterday, but the May contract is able to stay above its contract low. Corn could possible oversold in the short term but overall the fundamental situation looks bearish. Ethanol production/demand and gasoline demand just the first week of major reduction with more likely to follow. Look for slightly higher trade today as we may bounce off recent lows.
Soybeans continued to trade lower overnight after yesterday’s sell off. The market is now 5% lower for the week. Pressure is coming as the Brazilian Real has made new lows against the U.S dollar. It looks that the U.S may be gaining some acres back although weather will be a major determining factor. Look for mostly lower trade as it looks traders are liquidating their long positions.
Spring wheat traded lower overnight after selling off yesterday. For the past couple of weeks wheat has rallied and may have priced itself out of the world market. Weakness is also stemming from heightened fears of the spread of the Coronavirus and its affect on the economy. Look for continued lower trade today.
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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