Look at your revenue protection insurance, analyst says | Tuesday, March 14, 2023

The corn and wheat markets were strong today and even soybeans turned mostly higher into the close. The lower board price and lower U.S. dollar has made our grains competitive in the global export markets. The charts look like we may have put in spike low. 

Note today that the expiring March corn contract closed at a 7¢ premium to the May contract, March soybeans closed at a 7¢ premium to the May contract. Wheat futures posted an impressive reversal last Friday with strong gains into the close today.  

I will repeat my morning comments. I am not a crop insurance agent. I am a risk manager. Consider this with the large sell-off in corn and soybeans since the end of February and the current economic uncertainty, it may be time to up your revenue protection crop insurance coverage. The deadline to increase your coverage is tomorrow. 

In the outside markets today, the stock market has been very volatile and is now up 271 points. The US dollar is up 1 point today, but down for the week. Crude oil is down hard again today with the last trade showing crude down $3.30 per barrel. 

At the close May corn is up 7¢, with December up 2¢, May soybeans closed 2¢ higher with November soybeans down 1¢. Wheat futures closed  11¢ to 18¢ higher. 

Livestock futures closed lower today. April Feeder cattle are closed down $1.32 at $195.75. April live cattle closed down 50¢ at $163.05. April lean hogs closed down 82¢ lower at $85.40. 

Corn and wheat prices turn higher: 10:50 A.M. C.T.

The corn and wheat markets have turned higher. Soybeans are lower on the day, but near the highs of the day. Looking at the corn and wheat charts it looks like a possible reversal for corn. The timing is right. Wheat is higher on the week, and soybeans are a fraction lower after testing key support.

A review shows that the expiring March corn contract is trading at a 6¢ premium to the May contract, March soybeans are at a 10¢ premium to the May contract. For wheat, wheat futures posted an impressive reversal last Friday. Prices are higher this week.  

I will repeat my morning comments. I am not a crop insurance agent. I am a risk manager. Consider this with the large sell off in corn and soybeans since the end of February and the current economic uncertainty, it may be time to up your revenue protection crop insurance coverage.

Let's look at the outside markets. The stock market is posting impressive gains with the Dow up 451 points. The US dollar is up 13 points today, but is down for the week. Crude oil is now down just 55¢ after testing keep support at $72 per barrel.

At this time May corn is up 7¢, with December up 2¢, May soybeans are now 1¢ lower with November soybeans down 1¢. Wheat futures are 12¢ to 18¢ higher. 

Livestock futures are mixed this morning. April feeder cattle are down 82¢ at $196.25. April live cattle are down 10¢ at $163.47. April lean hogs are 12¢ lower at $86.07. 

Corn and soybeans open lower: 8:46 A.M. C.T. 

The corn and soybean markets were hit hard by fund liquidation on Monday and the volatile stock market had a lot of traders going to the sidelines. So far today the U.S. stock market is higher following gains in Europe. 

At this time in grain markets, corn futures are 2¢ lower, soybean futures are 2¢ to 5¢ lower and wheat futures are mixed – mostly lower. 

I am not a crop insurance agent, but with the large sell-off in corn and soybeans since the end of February and the current economic uncertainty, it may be time to up your coverage.

Around the world in the stock market, the stock market in China is down 0.7% and in Japan the stock market is down 2.2%. European stocks are up 0.2%.  

The weather in Argentina remains dry and private crop projections continue to move lower. Dr. Michael Cordonnier dropped the size of the Argentine corn and soybean crops by another 3 million metric tons each as the hot dry weather continues. 

In the outside U.S. markets this morning with the Dow futures up 317 points. Crude oil is down $1.30 per barrel while RBOB gasoline futures and diesel futures are down 1¢ to 2¢ per gallon. 

Livestock futures are lower this morning. April hogs are down 92¢, April live cattle are down 35¢, and April feeder cattle are 47¢ lower.