Morning Market Wire

Thursday July 7, 2022                                               By: Eric Peterson

Drayton will be closed for receiving grain July 11th-July 15th as we transition our system to the new elevator.  The office and locations will remain open. 

Corn traded higher overnight on a technical bounce.  December corn is making the move back to $6.00 with a gap from $6.02 to $6.04.  Overall, U.S weather remains favorable though some parts of the Eastern Corn Belt are dry.  Look for mostly volatile trade today as weather remains the main driver.    

Soybeans were sharply higher overnight bouncing from yesterday’s losses.  November soybeans have dropped from a high of $15.07 on 6/30 to yesterday’s low of $13.02.  There is a gap left at $13.74.  Soybean trade is expected to remain sideways as world supplies are tight and biofuels are in demand. 

Spring wheat saw double digit gains overnight on what appears to be a technical correction.  Over the last few months wheat prices have took the escalator up and the elevator down, losing $4.00 in the past 50 days.  Russia production appears strong but the big question remains to be demand.  Look for the market to remain volatile as the supply is tight and war in Ukraine continues.    

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.)

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