Monday Oct 12, 2020 By: Eric Peterson
Corn was lower to open last night but has since rebounded to close a penny higher. The December contract was unable to break the $4.00 mark overnight reaching $3.99 ¾ . Corn has traded higher since Friday’s USDA report. The report was mostly friendly has the USDA reduced ending stocks for 20/21 and lowered harvested acres. Look for slightly higher trade today as the market focuses on the tighter balance sheets.
Soybeans started the session lower but then made a modest move higher. The November contract has a wide 15 cent range overnight. The market failed to hit last Friday’s high of $10.79, which came on the smallest U.S carryout in 5 years of 290mb. Look for flat to three lower to start, but It could be a volatile session, we have already traded a 13 cent range overnight.
Spring wheat saw two sided trade overnight as wheat looks to be follower. Looks like Russia is forecasted to get rain as is parts of Western Europe. Global demand looks to be mostly routine as most eyes are focused on Russia weather. Look for choppy two sided 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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