Morning Market Wire 2/13

Thursday February 13, 2020 By: Eric Peterson

Corn traded weaker overnight after seeing a bounce yesterday. The March contract remains rangebound with the 50 day moving average acting as resistance at $3.84. The first look at 2020 U.S acres will be March 31 but seeing estimates already at 92 million. Look for two sided trade today as we bounce off the most recent lows.

Soybeans closed a fraction lower this morning with the Mach contract trading a six cent range. The market was weaker the majority of the night but managed to stay above yesterday’s low. The effective date of the Phase 1 deal is February 15th and the market is hoping to see the U.S sees some business from China next week. Look for weaker trade today as the market awaits business from China.

Spring wheat trade was choppy overnight as the market continues to trend lower. Like soybeans, the wheat market is hoping for some Chinese business next week as Phase 1 deal goes into effect this weekend on February 15th. Today’s export sales came in at 643.1 tmt in line with expectations of 300-650tmt. Look for lower trade today on spillover weakness from corn and soybeans.

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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