Will we see any surprises in the USDA February WASDE report due at 11:00 am? Markets are all trading even to slightly lower this morning ahead of the report. China Phase one and coronavirus continue in the headlines pressuring grain. USDA does not plan on adjusting exports for projections of Phase One.
March corn continues to trade in 3.79 to 3.85 range. Exports have shown some strength as demand out of the Gulf has intensified recently. Currently exports are 42% behind last year. Corn production number is not expected to be adjusted until the Northern Plains and Lake States are resurveyed, at the earliest in the March report.
Soybeans are hit the hardest on the coronavirus news. South America is currently harvesting and supplying the global stocks. There just isn’t any news to spark a rally in soybeans.
Wheat has been trying to get a handle on global supplies. Russia enacted an export quota which will continue to tighten stocks. Australia has received some rainfall, time will tell if it’s enough to replenish soil moisture following a three year drought.
Spring crop insurance price is currently being tracked. Right now 2020 price is tracking at lowest level in 10 years excluding 2016. With that being said it is looking more attractive to plant more corn than soybeans. With the current carryout, exports lagging and increase in acres December corn price will see some pressure. Now might be the time to get some new crop sold when the board trades at $4.00 or above.
This is a good time to have a marketing plan in place to lock in prices when they trade at a profitable level. Reach out to your Grain Marketing specialist to get offers in place to capture any upside swings in the market.
We will have our Grain Producer meetings February 24 and 25th. We will discuss Market outlook and creating a plan for your crop. Hope you can make it!
With the quality of this year’s crop please keep safety in mind when working around your bins. If you have problems with the grain bridging please take the time to approach the situation in a safe manner. Twenty seconds is roughly how log it takes for a grown man to become entrapped in a grain bin. Instead take twenty seconds to make the right choice and stay alive.
Contact your Grain Marketing specialist for all your grain marketing needs. We are here for you.
Have a great day.