Morning Market Wire 1/13

Monday January 13, 2020 by: Eric Peterson

Corn traded mostly unchanged overnight after seeing a non-eventful USDA report on Friday that surprised traders with a higher than expected 2019 production. The market was expecting a reduction to the corn supply, but the USDA raised the corn yield one bushel per acre to 168.0 bpa. Look for the market to remain steady this morning and continue to be rangebound until it can find some fresh news to trade.

Soybeans were weaker overnight with the March contact closing at the session low of $9.39. The market continues to await the signing of the Phase 1 agreement which is schedule to take place on Jan. 15th. At the signing we should see details regarding Phase 1. Look for weaker trade today as the Brazil harvest is just beginning so the demand window for U.S soybeans will begin to close quickly.

Spring wheat traded lower overnight with Kansas City and Minneapolis losing a good portion of their gains from Friday U.S carryout is projected to be over 950mb for a 5th year in a row which is also pressuring the market. World carryout is projected to be a record large amount. Look for mostly sideways trade as the market focuses on the signing of Phase 1.

Compass contracts are a great way to market your new crop by pricing grain daily at a fixed higher futures price. Below are today’s closing bids for two types of compass contracts we offer. If you would like to make an offer or would like more information please give me a call at the office. (All compass contracts have a 48 hour probation period.)

Below is the third compass contract we offer which pays you a premium for your old crop for potentially selling the same amount of new crop. You only sell the new crop if the futures are equal to or greater than the target price on the trigger date. There are many different premiums and target prices available. Please call for more info!

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