Morning Market Wire

Thursday September 5, 2019 by: Eric Peterson

We currently have a bid of -2.00z basis for >200 falling numbers, any pro, and less than 15% damage. Please bring in a sample before you haul.

Market Summary

Corn saw a small bounce overnight, after trading contract lows yesterday. Weather forecasts appear to be favorable through mid-month, giving the crop time to develop. Analyst groups begin to offer their private survey results on yield and production ahead of next week’s USDA report. Yesterday saw estimates released of 167.71 and 168.4bpa, both are under the current USDA estimate of 169.5bpa. Look for stronger trade this morning.

   Soybeans closed a penny higher this morning after trading two sided overnight. U.S weather remains generally non-threatening and favorable for development. Cool daytime highs are a concern across the northern region though any threat of a frost is currently absent from the forecasts. Look for slightly higher trade as the U.S crop needs time without a frost event.

Spring wheat saw follow through strength overnight after closing seven cents higher yesterday. The strength in wheat is most likely technical, as it pauses after a major sell off. Weather across the northern plains remains a disrupter to the remaining spring wheat harvest as quality is becoming a major concern. Look for stronger trade today as we get some follow through buying.

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

Spring Wheat Protein Scales

-.03 cents ea. 1/5 down from 14.0% to 13.0%

-.03 cents ea. 1/5 down from 13.0% to 12.0% (Max -.30)

+.02 cents ea. 1/5 from 14.0% to 15.0%

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