Wednesday Oct 7, 2020 By: Eric Peterson
Corn are trading higher this morning after the December contract was seen reaching an almost eight month high yesterday. Overall stocks have fallen on data from farmer based surveys, ethanol usage has dropped over that same time frame. Look for steady to higher trade today on support from dry conditions in South America.
Soybeans continued its strength in the overnight session. Soybean planting progress across Mao Grosso is tied for the slowest pace since 2008 as dryness continues to cause delays. Look for stronger trade today on continued support from strong export sales and concerns regarding planting conditions in Brazil.
Spring wheat was slightly higher this morning taking a slight breather after yesterday’s rally. The USDA reported that U.S winter wheat is now 52% planted up from 35% last week and ahead of the five year average. The average analyst estimate for ending stocks on this Friday’s USDA report is set at 887 million bushels vs. the August USDA number of 925 million. Look for mostly higher trade 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.)
|Price Builder Bonus||Daily Price Plus||Futures at 8:00am|
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 Premium||New Crop Target||Trigger Date|
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