Morning Market Wire

Monday February 10, 2020 By: Eric Peterson

Drayton and all locations will be closed Wednesday Feb. 12th for employee training.

Monday 2/10– Drayton will be taking dry 14.0 pro wheat, wet/dry soybeans. Please call for wet wheat.

Corn was weaker overnight, dropping back down from Friday’s bounce higher. The WASDE report set for release tomorrow morning isn’t expected to bring much change to the fundamental scenario. The funds increased their short in the latest commitment of trader’s report by 26,514 contracts to be net short 55,990 contracts. Look for mostly lower trade with prices back down close to support levels.

Soybeans traded two sided overnight with the March contract trading a five cent range. The coronavirus continues to dominate the headlines as the reported death toll is now 908 people with 40,171 cases confirmed. China continues to say they will meet the phase one trade deal requirements despite the coronavirus outbreak. Look for limited upside trade today on a big crop coming out of South America and a lack of Chinese buying.

Spring wheat trade remains choppy with no fresh news to trade on. Tomorrow’s WASDE report is not expected to show much changes from January’s report with ending stocks last estimated at 965 million bushels. Look for more sideways trade to continue as the market awaits for international business to pick up.

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.)

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