Morning Market Wire

Thursday November 21, 2019 by: Eric Peterson

Corn traded two sided overnight with the December contract closing a penny higher. First notice day is next week and we will soon be rolling bids to the March contract. Technically, the December contract is attempting to hold onto the top side of the gap, which begins at $3.68. The Dec/March spread has widened out to 10 ½ cents, and Dec/July at 22 cents. Seasonally, these spreads will narrow as we get past first notice day. Look for mostly steady trade this morning.

Soybeans traded higher overnight after having difficulty yesterday as the session wore on. There is support at the $9.00 level so it may look to test that gap again. That would fill the gap that was made after the November soybeans expired. The President continues to use the tariff threat against China if a deal isn’t signed by December 15th and the Chinese are optimistic that a deal will be signed.

Spring wheat was lightly mixed overnight as news remains routine. Minneapolis wheat is attempting to hold on to the psychological support at $5.00. Chicago wheat has been strong compared KC and Mpls, any strength here will force the other tow markets up. Look for 1-2 cents higher today as Chicago leads the other two markets this 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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