Wednesday January 29, 2020 By: Eric Peterson
Wednesday 1/29– Drayton will be taking wet/dry soybeans and dry corn. Thursday 1/30– Drayton will be taking wet/dry soybeans and dry corn Friday 1/31– Drayton will taking wet/dry soybeans and dry corn.
Corn traded two sided overnight but continues to be rangebound. The market seems content to continue its sideways movement. Technical resistance for the March contract is above at the 200 day moving average of $3.87. Large spec and managed money funds remain short, which leaves the market susceptible to short covering. Look for mostly lower trade today as Coronavirus remains in the headlines.
Soybeans closed a fraction higher this morning with the March contract trading an eight cent range overnight. Soyoil was higher overnight which provided strength to the market. Additional strength in soybeans stems from the market being oversold and due for correction. Look for weaker trade as coronavirus continues to spread and China looks like they will keep things closed for an extended holiday until next week.
Spring wheat traded lower overnight with Minneapolis March wheat closing five cents lower this morning. Wheat markets were lower across the board overnight and are currently at the low end of their trading ranges. March spring wheat broke below its 100 day moving average for the first time in over a moth which is currently at $5.39. Look for weakness to continue today.
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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