Morning Market Wire

Wednesday November 6, 2019 by: Eric Peterson

Corn traded higher overnight with the December contract trading a narrow three cent range. It seems we are seeing pre-report positioning as people try to interpret yield reports ahead of Friday’s new supply/demand report. The trade is estimating the USdA yield projection will be released at 167.5bpa, compared to last month’s 168.4bpa. Look for improved weather conditions to allow for an increase in harvest progress which will pressure markets, but the market will find some direction from the report on Friday.

Soybeans closed a fraction lower this morning as the market continues to lack direction and traded within a narrow range overnight. The trade is expecting a friendly report on Friday for soybeans, harvested acres are expected to fall to 75.4 million acres, previously 75.6 million acres, due to the resurveying of Minnesota and North Dakota. Look for mostly narrow trade today as the market will have little to no direction until there is some confirmation of progress on the trade deal and until the report on Friday.

Spring wheat closed nearly unchanged this morning as the Minneapolis followed the weakness from Kansas City and Chicago markets. News is once again routine without any fresh news to change much. Look for slightly higher trade today due to an increase in world demand and concerning planting progress for Kansas City wheat.

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 Oct 20$10.25$10.10$9.72
CZ20 Oct20$4.25$4.19$4.02
MZ Dec 20$6.18$6.05$5.81

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
0.286.10 MWZ2011/20/20
0.2810.20 SX2010/23/20
0.184.10 CZ2011/23/20

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