Morning Market Wire

Friday January 10, 2020 by: Eric Peterson

Corn closed a fraction higher this morning as the market awaits today’s USDA report. The USDA is expected to show a reduction in the U.S harvested acres, the South American crops and overall tighter U.S and world ending stocks. Look for higher trade this morning in front of the report on optimism over the signing of the Phase 1 agreement to take place Jan. 15th.

Soybeans traded lower overnight with the March contract trading a relatively narrow four cent range. The market continues to trade lower on fund selling ahead of the USDA report. Prices are drawing additional pressure from favorable South American weather and ideas of a near record crop in Brazil. Look for mostly quiet trade ahead of the long awaited USDA report.

Spring wheat bounced higher overnight as today’s report is expected to give us a small winter wheat planted acres number. Although, some of that may already be factored in. There has been some speculation that China will be a big buyer of U.S wheat after the Phase 1 agreement is signed. Rumors were that China is going to buy 5-6 cargoes of wheat from the U.S after the agreement is signed.

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.