Morning Market Wire

Wednesday October 9, 2019 by: Eric Peterson

Corn traded a narrow range overnight, pausing briefly after making strong gains yesterday. December corn is creeping closer to its 200 day moving average of $4.01. Large spec funds and managed money funds are still carrying a large net short position, which makes the market susceptible to short covering. Look for slightly higher trade today on weather concerns.

Soybeans traded higher overnight on headlines about China and trade talks as well as weather ahead of tomorrow’s USDA report. There are rumors that China is supposedly talking about upping its U.S soybean purchases from 20mmt to 30mmt to aid in trade talks. 30mmt gets them closer to what could be considered normal pre the trade war. Look for continued strength today on trade talk optimism.

Spring wheat found strength overnight on quality concerns. North Dakota still has wheat standing in the field that may never get harvested; which could be friendly for the balance sheet long term. Look for mostly quiet trade today as there is still a general lack of fresh news to add strength to the market ahead of Thursday’s WASDE report.

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 BonusDaily Price PlusFutures at 8:00am
SX20 Oct20$10.31$10.00$9.73
CZ20 Oct20$4.32$4.22$4.09
MZ20 Dec20$6.34$6.15$5.90

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 PremiumNew Crop TargetTrigger Date
.306.20 MWZ2010/20/20
.3010.20 SX2010/23/20
.184.10 CZ2011/23/20

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