Morning Market Wire

Monday September 9, 2019 by: Eric Peterson

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

Market Summary

Corn trade was mixed to weaker overnight as U.S weather continues to be a non-threat as an early end to the growing season frost event is not in the 8-14 day forecast. The USDA will release the September S&D report on Thursday at 11:00am. A Reuter’s poll of analysts has the average yield estimate at 167.2 bpa and 13.441 billion bushels of production. Look for mostly lower trade today as news remains bearish.

Soybeans traded lower overnight with the November contract closing at the overnight low of $8.55. Overall U.S weather remains mostly favorable as the upper Midwest gets some rain; September rains are usually favorable for soybeans. A Reuter’s poll of analysts has the average yield estimate at 47.2 bpa and 3.579 billion bushels of production for the USDA report this week. Look for mostly weaker trade today.

Spring wheat closed a fraction lower this morning as volume is light and news is routine. Overall, the wheat market still seems oversold. Last week, Stats Can confirmed large stocks, which seems to be a common global theme, especially across the Northern Hemisphere. It appears that rains could hamper the spring wheat harvest and give continued concern over grain and milling quality.

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
SH20(Mar)$8.92$8.88$8.83
CH20(Mar)$3.91$3.76$3.67
MWH20(Mar$5.18$5.14$5.09

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!

Old Crop PremiumNew Crop TargetTrigger Date
.155.40 MWH202/22/2020
.159.40 SH202/22/2020
.253.70 CH202/22/2020

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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