Wednesday Oct 14, 2020 By: Eric Peterson
Corn traded two sided overnight with a slightly weaker tone heading into the daytime. Corn futures have seemed to run into overhead resistance at $4.00 on the December 20 and December 21 contracts. The crop progress report, released yesterday afternoon, showed the U.S corn crop at 41% harvested. This compares to 20% last year and a 5 year average of 32% at this point in the season. Look for weaker trade has harvest progress progresses.
Soybeans found strength overnight with the November contract closing five cents higher. Brazil dryness has led to planting delays and a possible delay to the beginning of the export season in early 2021. Brazil is seeing some rain in the forecast as it seems more scattered. The crop progress report showed U.S soybean harvest at 61% complete. Last year at this time harvest was only 23% complete and the five year average is 42%. Look for mostly higher trade today on dryness in South America.
Spring wheat was mostly quiet overnight with the December contract trading a four cent range. The USDA put winter wheat seeding at 68% complete vs 61% last year. December 21 wheat is nearing $6.00, which may be a selling opportunity. Look for mostly lower trade today as fast paced planting may cause an increase in winter wheat acres.
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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