Corn and soybeans are both trading 6 lower this morning while wheat is down 10. Crude is below $29/bbl and the Dow is 2300 to start the week.
The Federal Reserve also announced a buyback program of $200B of mortgage-backed securities and $500B in Treasury notes to prevent the coronavirus pandemic from leading the US into a recession. The Fed and other central banks have dramatically stepped up efforts to stabilize capital markets and liquidity, yet the moves have so far failed to boost sentiment or improve the rapidly deteriorating global economic outlook.
According to John Hopkins University total COVID-19 infections have now topped 169,000 with more than 6,500 deaths attributed to the disease around the world. Here in the US infections rose by nearly 3,800. The rise in US infections is to be expected to grow as the testing programs around the country are are just now ramping up. Last week’s announcement of the outbreak being reclassified as a pandemic has led to a massive economic slowdown across the US as schools close and companies reduce production, sending workers and students home to prevent the spread of the disease.
Producers that need cash flow in the next couple weeks should pull the trigger now and make the sales as there doesn’t appear to be an upside on the horizon. Producers that have grain in storage and are financially stable should still be moving grain to maintain quality in bins. Give us a call to find out what options we have for cash and deferred pricing of corn.
Have a Safe Day!