Morning Comments March 1, 2019

Shutterstock 526530454 Soybean Fields

Opening Calls:

Corn 1 to 2 higher

Soybeans 2 to 4 higher

 

Acreage debate in the U.S. continues. With weather in the Midwest dumping more snow than normal, analysts ponder what farmers will plant this spring. Earlier they estimated that farmers would plant 2.5 million more acres of corn than last year with soybeans planting 3.0 million acres less than last year.

 

Export numbers yesterday showed Chinese soybean export numbers came in at good numbers.

 

Today is the final day to sign up for the Landus Cooperative Averaging contract. Excellent marketing tool to help with new crop grain sales. Here are the specifics. Remember deadline is 4:00 pm. today.

 

The Averaging Contract sells a portion of the total committed every day during the pricing period.

  • For corn, that is from March 11th through June 28th; Last year’s average was a little over $4 December futures (after fees). 5,000-bushel minimum and increments. (2018 = $.0469 CZ18)
  • For soybeans, it’s April 29th through August 2nd; Last year’s average was $9.45 November futures (after fees).  2,500-bushel minimum and increments. (2018 = $9.4910 SX18)
  • This has been a consistently good program through the years, as it is designed to price during the traditionally high portion of December corn or November soybean futures.
  • There is a 4 cent per bushel fee for corn or beans in the Averaging Contract.