Monday December 16, 2019 by: Eric Peterson
Monday 12/16- Drayton is taking wheat, please call for corn, NO Soybeans Tuesday 12/17- Drayton is taking wheat, please call for corn, NO Soybeans Wednesday 12/18- Drayton is taking wheat and soybeans, NO Corn
Corn traded higher overnight on reaction to Friday’s agreement with China on tariffs. Corn futures have hit a six-week high. China and the U.S agreed to a phase one deal on tariff reductions. China supposedly pledged to ag purchases $40 billion. The biggest year ever on Chinese ag purchases was in 2013 at $29 billion. Look for stronger trade today on trade optimism with China.
Soybeans gapped higher once again as the U.S and China have been rumored to reaching a phase one deal. Phase 1 increased purchases are expected to include more soybeans, but China has made comments about keeping good relations with other trade partners. November 20 soybeans are now above $9.50 and above the 50,100, and 200 day moving averages. Look for continued strength in the market today on trade optimism.
Spring wheat closed nine cents higher this morning following the strength in corn and soybeans. The Chicago/Minneapolis spread continues to narrow. The market is optimistic that a phase 1 deal will mean more U.S exports to China. China used to be a buyer of U.S spring wheat before the trade dispute. Look for higher trade today as calls are for seven to ten cents higher.
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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