Morning Market Wire

Thursday Sept 17, 2020                                               By: Eric Peterson

Corn traded two sided overnight as the December contact sees a new high for the current move at $3.73.  Technically, the December contract sits well above the 200, 100, and 50 day moving averages.  Continues talk of China buying or needing to buy a substantial amount from the U.S is the underlying supportive factor. Look for slightly higher trade as the $3.70 mark is level of resistance.      

Soybeans traded higher the majority of the night but were under pressure this morning to close four cents lower.  November soybeans hit a new contract high overnight and technically are over a dollar higher than any major moving averages.  The USDA yield of 51.9 bpa is under question but next months report should verify how this crop yields.  Look for mixed trade today as November soybeans went from up 7 to down 4 overnight, pulling back after hitting the highest price since June 2018. 

Spring wheat was mixed overnight with the December contract closing nearly unchanged this morning.  Spring wheat harvest is all but complete at 92% completed.  Look for slightly lower trade as U.S spring wheat has been left out of the China buying spree, but world wheat export values are strong in general.          

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.)

Price Builder BonusDaily Price PlusFutures at 8:00am
SH21 Jan21$10.30$10.10$10.10
CH21 Jan21$3.94$3.85$3.78
MWN21 June21$5.84$5.80$5.63

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!

Old Crop PremiumNew Crop TargetTrigger Date
0.166.00 MWZ2111/20/21
0.2210.20 SX2110/20/21
0.164.00 CZ2111/20/21

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