Tuesday November 19, 2019 by: Eric Peterson
Drayton will be dumping corn and soybeans today from 8:00am to 5:00pm. Please CALL BEFORE YOU HAUL.
Corn closed a penny higher this morning after trading a two cent range overnight. December corn sits just below $3.70 with the contract low below at $3.52. The USDA pegged crop progress at 76% complete yesterday just behind the average estimate of 77% and much farther behind the five year average of 92%. Look for weaker trade as we get closer to first notice day.
Soybeans attempted to rebound overnight after yesterday’s poor day. Lack of news and exports continue to weigh down the market. Technically, the continuous chart is showing a gap when November soybeans expired so with the lack of strong fundamental news, it appears to be a good time for the market to cover this. The downside of that gap is $9.01, so that may be the target this week.
Spring wheat saw a quiet overnight session with the December contract trading inside a penny range. The market continues to lack any major news to trade off. Winter wheat plantings are 95% complete which was in line with estimates. Winter wheat conditions were 52% good/excellent down 2% from last week.
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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