Morning Market Wire

Monday December 9, 2019 by: Eric Peterson

Corn closed a fraction higher this morning as early trade failed to take out the 20 day moving average of $3.80 March futures. The USDA will release the December Supply and Demand report Tuesday at 11:00am. The average trade estimate on corn carryout is 1.910 billion bushels. No major production adjustments are expected to be made at this time. Calls today are for steady to one lower.

Soybeans traded higher once again on optimism that a phase 1 trade deal with China nears. However, the U.S still plans to add additional tariffs on Sunday December 15th. It is estimated that China still needs to buy another 2-3 million tons of soybeans for January, before the Brazilian harvest is available. For November, China imported 8.28 million tons of soybeans, up 34% from October. Look for higher trade today.

Spring wheat traded higher overnight as Minneapolis wheat narrows the spread agains Chicago wheat. The market continues to lack any major fresh news. The December contract will expire this week, below $5.00 and about a dime off contract lows. Stats Canada on Friday trimmed December all wheat production to 32.31mil tons, down from the September estimate of 32.149 mil. Look for mostly mixed trade 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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