Friday February 7, 2020 By: Eric Peterson
Drayton and all locations will be closed Wednesday Feb. 12th for employee training.
Friday 2/7– Drayton will be taking dry 14.0 pro wheat, wet/dry soybeans, and dry corn. Please call for wet wheat.
Corn saw light strength overnight as futures consolidate into a mostly sideways pattern. Technical support for the March contract seems to be below at $3.75. Support for December corn is at the contract low of $3.87. Look for mostly steady trade today as news remains mostly routine as China and the rest of the world fight coronavirus and its economic impact on global trade.
Soybeans traded two sided overnight with the March contract closing a fraction higher. Weakness came overnight as the Phase 1 deal has not taken affect yet and China movement has slowed because of coronavirus. Argentina has had perfect weather for their soybeans so far, with 2 week forecasts also looking favorable. Look for rangebound trade today as the market awaits the February 15th WASDE report.
Spring wheat traded two sided overnight with the March contract closing two cents off the overnight high of $5.36. News that China is buying French wheat continues to add pressure to the market. U.S winter wheat is in mostly favorable shape with recent snow and precipitation. Look for slightly higher trade as wheat is trying to hold its head above its 50 day moving average.
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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