Tuesday April 7, 2020 By: Eric Peterson
Corn found strength overnight with the May contract closing at the session high of $3.32. The market was higher overnight on ideas that corn is oversold. May corn has closed lower the past 7 sessions. The next WASDE report is scheduled for Thursday with a wide range of estimated ending stocks from 1.79 billion bushels to 2.150 billion bushels. Look for choppy trade today as corn will likely struggle to keep overnight gains.
Soybeans closed four cents higher this morning, following the strength in the soymeal market. AgRural lowered their Brazilian soybean estimate from 124.3 to 123.8 million tonnes. Harvest is roughly 85% complete. Estimates for the upcoming WASDE report are out. Soybean ending stocks have a range of 385 and 475 million bushels. Look for slightly higher trade today as South America production estimates continue to be lowered.
Spring wheat was weaker overnight with the May contract closing three cents lower. An improvement on yesterday’s condition report pressured the market. The good/excellent rating on winter wheat was 62%. The last rating in the fall was 52%, so a solid improvement. The average decline from fall to spring is 5%, so to see an improvement was a surprise. Look for continued choppy 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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