Grain News – More Snow & Freezing Rain
Just another strange week here in the great state of Wisconsin. Here in the central part of the state we have more snow/freezing rain that is not welcome this time of year. This week in the grain world not much is exciting. The WASDE Report was released leaving prices in approximately the same range we have been seeing for a week now.
Corn is trading a smidge lower due to loss of export sales. Corn harvest in South America is still plugging along. It looks like Argentina has raised the estimated production again on corn and beans. Ethanol margins are getting tighter due to some plants shut down due to flooding.
Soybeans are also lower this morning. It seems that the market is getting more skeptical on an agreement between the US and China. Along with no deal there also has been a cancellation of the World Pork Expo in Des Moines IA. This could potentially affect the bean market, I would think new relationships are found during such world events.
Wheat is still holding somewhat steady. Looks like exports are neutral for the US. European futures are a tad higher. RJO reported that the wheat market could start to stabilize in the next coming months.
While prices are not where most farmers would like, now is a great time to try Premium Offer Contracts on old crop grain. If you look further in to the differed months prices start to get stronger, so forward contracting in 2020 or Price Builder Bonus contracts can help farmers capture the carry in the market. My final tip for these markets is selling the calendar not just the spikes. When selling the calendar one can hopefully beef up the average price per bushel rather than missing out on the short window of a rally.
Have a great day, spring should be arriving soon!