Morning Market Wire

Friday December 27, 2019 by: Eric Peterson

Corn closed a penny higher this morning with the March contract trading a narrow two cent range. Corn exports were 626.2tmt vs estimates of 500tmt-1.3mmt in today’s weekly export sales report, which was delayed one day due to the holiday shortened week. Look for stronger trade today as a weaker dollar, firm wheat prices and strong corn basis is helping corn return to the top of the recent trading range.

Soybeans traded higher overnight as enthusiasm over a trade deal with China and improving exports are aiding the market. Soybean exports came in at 747.3tmt compared to estimates of 700tmt-1.55mmt. Look for strength today as continuation of optimistic trade talk combined with weaker Real currency gave the market a lift overnight.

Spring wheat continues to rally with the next level of technical resistance at $5.52. A strong storm system is forecasted to move across most of the middle of the U.S over the next 3 days, but the question remains whether the exact route will alleviate dryness in the western wheat areas. Look for higher trade today on declining wheat production and lower U.S acres.

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!

Any information, materials and opinions (together, “CHS Materials”) presented by CHS to the recipient of such CHS Materials, whether in written or oral form, is for general information purposes only and does not constitute legal or other professional advice and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. CHS makes no warranties, representations or undertakings, whether express or implied, about any CHS Materials (including, without limitation, any as to the quality, accuracy, completeness or fitness for any particular purpose of any CHS Materials). Recipient agrees that CHS shall not be liable to recipient relating to or resulting from the use of any CHS Materials or any inaccuracies or errors therein or omissions therefrom.

© 2020 CHS Inc.