Tuesday September 17, 2019 by: Eric Peterson
Corn traded lower overnight after a favorable progress report yesterday afternoon. The latest crop ratings report has corn at 55% good/excellent. Corn harvest is now underway at 4% complete, behind the five year average of 7%. Look for mostly lower trade today as conditions may not be as bad as many think.
Soybeans closed six cents lower this morning two cents off the overnight low of $8.91. The latest crop rating report has soybeans at 54% good/excellent which down 1% from last week. Last year at this time the crop rating was at 68%. Look from mostly lower trade today on a lack of demand and improving conditions.
Spring wheat traded lower overnight following the weakness in the corn and soybean markets. Northern spring wheat areas continue to struggle as quality has become a major issue. The USDA has spring wheat harvest at 76% complete behind the five year average of 93%. The USDA also reported winter wheat seeding at 8% complete. Look for slightly lower trade today on spillover weakness from corn and soybeans.
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.)
|Price Builder Bonus||Daily Price Plus||Futures at 8:00am|
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!
|Old Crop Premium||New Crop Target||Trigger Date|
Spring Wheat Protein Scales
-.03 cents ea. 1/5 down from 14.0% to 13.0%
-.03 cents ea. 1/5 down from 13.0% to 12.0% (Max -.30)
+.02 cents ea. 1/5 from 14.0% to 15.0%
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