Pinnacle Marketing – Meeting Summary


Corn
• Strong U.S. and World Demand
• Both U.S. and World Stocks Decreased in 2019
• Large U.S. acres expected in 2020 (94-95mil)
• U.S. projected Ending Stocks at 2.7 billion for 2020
• With increased acres projected and increased projected ending stocks for 2020 look for pricing opportunities for 2020 and 2021
• Local basis will remain firm – best in U.S.
• Currently 20% priced at $4.50 on 2020 Model Farm Crop (Futures Only – No Basis)
Target Sep ‘20 at $4.05 for next objective
• Last 5 years June, July produced market highs

Soybeans
• Strong U.S. and World Demand
• U.S. Ending Stocks dropped from 909 to 440 million bushels without China trade deal
• Inland Port at Dillon, SC
aaaaa• Like adding another processor from demand standpoint
aaaaa• Helping all basis in SC and NC
• Currently 40% priced at $9.7375 on 2020 Model Farm Crop (Futures Only – No Basis)
• Target Nov ‘20 at $10.00 for next objective

Cotton
• Strong World Demand for U.S. Cotton (16.5-17.5m bales) – Key for U.S.
• Stagnant U.S. demand (3-3.5m bales)
• U.S. acres projected at 12.5m (down from 13.74m acres)
• U.S. Ending Stocks projected at 4.5m bales (down from 5.39m bales)
• China has reduced stocks 6m bales below usage
aaaaa• U.S. prime candidate to pick up business with China
aaaaa• U.S. currently exports around 2.2m bales to China – projecting 3-3.5m bales for 2020 possible
• Top 3 U.S. export destinations
aaaaa1. Vietnam – 3.3m bales
aaaaa2. China – 2.2m bales
aaaaa3. Pakistan – 1.9m bales
• Target Dec ‘20 at $73.50 for first pricing objective

Wheat
• U.S. production for 2020 expecting slight decrease
• World demand weak
• U.S. Ending Stocks projecting slight decrease
• Local supply should be increased with more planted acres
• Milling wheat basis for harvest projected at +60-70 vs wheat board
• Local feed wheat basis for harvest projected at +90-1.20 vs corn board
• Currently 25% priced at $5.50 on 2020 Model Farm Crop (Futures Only – No basis)
• Target July ‘20 at $5.75 on 25% exp. production 2020 crop
• Target July ‘20 at $6.00 on 25% exp. production 2020 crop
• Target July ‘21 at $6.00 on 25% exp. production 2021 crop

 

Take Home Thoughts
1) Have a marketing plan
2) Set objectives
3) Know your cost of production
4) Don’t be afraid to sell a profit
5) Last 5 marketing highs were made in June and July

 

Pinnacle Marketing
• Transparent sharing of information
aaaaaSet pricing objectives with you and keep you on track while you are busy (planting, growing, harvesting, etc.)
Not trying to make any margins off your trade
aaaaaIf you have a better bid we are the first to tell you to sell it

• Provide quick, to the point information through:
aaaaaDaily Futures Prices, Recorded Phone Call, Market Recommendations, Weekly Market Update, Bi-Monthly Basis Update, Weekly Model Farm Update, and USDA Report Updates