Morning Market Wire

Thursday February 20, 2020 By: Eric Peterson

Thursday 2/20– Drayton will be taking wet/dry wheat. Please call for corn.

Friday 2/21- Drayton will be taking wet/dry wheat only. On lot by 3:30pm

Corn was weaker overnight in subdued trade as the March contract trades a narrow two cent range. Technical resistance is at the 50 day moving average of $3.84. The December contract back below $3.90 with the contract low of $3.87 acting as technical support. The average trade estimate from a Reuters poll ahead of today’s USDA outlook forum estimates 2020 corn planted acres at 93.6 million. Yeild is pegged at 176.5 bpa, production at 15.111 billion bushels.

Soybeans traded lower overnight with the March contract trading a seven cent range. March soybeans has seemed to consolidate into a $9.00 to $8.90 range. No news of China buying large quantity of soybeans from the Phase 1 agreement. Look for mostly weaker trade as the market awaits for Chinese demand meanwhile South America’s crop continues to grow.

Spring wheat traded lower overnight as we are apparently unable to hold early week gains. Rumors that China has bought some U.S spring wheat is providing underlying support. But the country report exporters are having difficulties with low falling numbers. Look for slightly weaker trade today.

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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