Tuesday January 28, 2020 by: Eric Peterson
Tuesday 1/28- Drayton will be taking dry wheat, wet/dry corn.
Wednesday 1/29– Drayton will be taking wet/dry soybeans and dry corn. Thursday 1/30- Drayton will be taking wet/dry soybeans and dry corn Friday 1/31– Drayton will taking wet/dry soybeans and dry corn.
Corn traded two sided overnight with the March contract trading a four cent range. Coronavirus continue to spread with reports this morning of over 4,500 cases and just over 100 deaths in China. Brazilian and Argentine corn crop estimates are unchanged at 100.0 million tonnes and 47.5 million tonnes respectively. Look for lower to unchanged trade today on uncertainty.
Soybeans continued to trend lower overnight as Coronavirus continues to spreads and its impact on demand is uncertain. Additionally, the market seems disappointed after having the U.S China deal signed, we have not seen China step up to make large purchases. Look for weaker trade today on uncertainty over coronavirus as well as continued favorable conditions for the South American crop.
Spring wheat closed lower this morning with the March contract trading a relatively wide nine cent range overnight. Technical support is below at the 100 day moving average of $5.39 then the 50 day moving average of $5.35. Resistance is above at $5.49. Look for lower trade today on continued virus chatter and its effect on demand.
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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