Morning Market Wire 1/9

Thursday January 9, 2020 by: Eric Peterson

Corn traded higher overnight as they bounce off the low end of the trading range. March corn has traded lower the past 4 sessions. Technical support is below at the 40 day moving average of $3.82 with resistance above at $3.86. As we near the end of the week we will continue to see pre-report positioning ahead of the USDA report on Friday.

Soybeans traded higher overnight in front of tomorrow’s USDA report. Average trade estimates for tomorrow’s report are production at 3.51bb compared to 3.55bb in December. Yield at 46.6bpa compared to 46.9 in December. Overall averages are leaning towards a tighter soybean supply. Look for higher trade as the Chinese are expected to sign “Phase one” of the U.S/China trade deal on January 15th.

Spring wheat bounced higher overnight as futures consolidate on the upper end of their recent trading range. Winter wheat acres are expected to be the smallest in many years… Although, this seems to be factored in as the market awaits fresh news. Look for mostly higher trade in front of tomorrow’s report.

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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