Morning Market Wire

Wednesday Feb 3, 2021                                               By: Eric Peterson

Corn traded lower overnight on follow through selling as it appears we have more spec selling.  The March contract consolidates at the high end of its trading range and within twenty cents of contract highs.  Export demand remains strong, ethanol demand sideways and feed demand mostly steady.  Look for weaker trade today as technical retracement continues. 

Soybeans were two sided overnight with the March contract trading a wide sixteen cent range.  Fund selling provided weakness overnight.  Old crop demand from China appears to have slowed, they continue to inquire and be light buyers in the new crop slots.  Look for lower trade today on pressure from the drop in Chinese soybean futures.      

Spring wheat was lower overnight as the overall whet market needs some fresh news and may need some outside help.  News remains mostly routine as drought in the U.S and Russian export tax have been traded so there is need for fresh news.  Look for slightly lower trade today as wheat will likely play the follower. 

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
SX21 Oct21$12.00$11.75$11.49
CZ21 Oct21$4.85$4.65$4.45
MWZ21 Dec21$6.85$6.65$6.41
Old Crop PremiumNew Crop TargetTrigger Date
0.246.80 MWZ2111/19/21
0.2514.00 SX2110/22/21
0.324.60 CZ2111/19/21

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