Morning Market Wire

Wednesday November 20, 2019 by: Eric Peterson

Drayton will be dumping corn and soybeans today from 8:00am to 5:00pm. Please CALL BEFORE YOU HAUL.

Corn traded lower overnight with the December contract trading a two cent range. The market is still hovering just above the gap at $3.67 on the continuous chart. Without any news to spark this mark we continue to trend downward. Poor export demand and seasonals pointing down going into first notice day are keeping prices stagnant. Look for mostly lower trade today as the gap below looks to be the next downside target.

Soybeans higher overnight but lower into the close with the January contract closing two cents higher. Technically, the continuous bean chart is showing some convergence with topside resistance at roughly $9.17. Downside is a bit more unclear but appears to be in the $9.06 area which would get us into the gap that begins at $9.10. Look for mostly quiet trade today as the market awaits export news to move the market.

Spring wheat closed a fraction lower this morning with the December contract trading a four cent range. Minneapolis wheat continues to lag behind with Chicago wheat now at a premium to Minneapolis December. Winter wheat continues to draw strength from declining crop conditions. Look for mostly flat to lower trade today as spread action will likely be the main driver today.

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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