Thursday Oct 15, 2020 By: Eric Peterson
Corn traded two sided overnight with the December contract hitting the $4.00 mark but unable to hold. Corn prices continue to trend upward on continued demand for U.S goods despite increased harvest activity. Prices are also drawing support from dryness in Brazil where farms look to plant their corn and soybeans for the 20/21 marketing year. Look for slightly higher trade today.
Soybeans closed twelve cents lower this morning, after trading a volatile twenty cent range overnight. China demand remains strong and well ahead of the past few years. Brazil soybean planting is delayed by dry weather, but there is some rain in the forecasts. Look for mixed trade today, as the market attempts to bounce back from overnight losses.
Spring wheat traded higher overnight as there seems to be spreading against corn and soybeans. Dryness in the U.S and Russia also are providing support. Technically, a close above $5.55 would be a above the neckline and would be a technical signal for another leg higher. 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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