Morning Market Wire 1/27

Monday January 27, 2020 by: Eric Peterson

Corn traded lower overnight with the March contract closing just above the session low of $3.79. The market gapped lower overnight and broke below the 50 day moving average of $3.83. The overnight sell off is linked to the fear of Coronavirus and the impact it could have on demand. Look for weaker trade today on fears of Coronavirus.

Soybeans gapped lower overnight and broke below $9.00 on the March contract for the first time since December 6th. South American weather looks favorable, which is adding pressure to U.S soybean prices. Additionally, the Brazilian real continues to weaken this morning trading at 4.2153, up .0339. Look for weaker trade today on virus fears, and good South American weather.

Spring wheat traded lower overnight with the March contract closing at the overnight low of $5.40. The wheat market continues to be on defensive from technicals and profit taking. Prices were thought to be due for a correction. Look for lower trade today on spillover weakness from the soybean and corn markets.

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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