Morning Market Wire 12/11

Wednesday December 11, 2019 by: Eric Peterson

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Corn closed a fraction lower this morning with the March contract trading a narrow two cent range. The USDA left corn carryout unchanged at 1.910 billion bushels. However world stocks were raised 4.6 million tons to 300.6 million tons, mostly on higher China production. Look for a quiet day today as yesterday’s report came in line with estimates. The next major report will be the January Supply & Demand report and the December 1 quarterly stocks report on Jan. 10th.

Soybeans closed a fraction lower this morning after trading two sided overnight. The USDA left U.S soybean carryout unchanged at 475 million bushels. World soybeans carryout was up slightly to 96.4 million tons. However this was down from last year’s 109.8 million tons. Look for slightly higher trade today as the market is anticipating some China sales announcements this week. Longer term dryness in Argentina could add additional support.

Spring wheat saw weaker trade overnight after yesterday’s mostly neutral report. U.S wheat carryout declined 40 million bushels to 974 million. USDA added 25 million to exports, and cut imports by 15 million. A small rally was seen after the lower carryout number was posted. We could be at a point where there are more speculative net shorts in Minneapolis than KC or Chicago. Look for mostly mixed to lower trade today.

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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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