Morning Market Wire

Friday September 20, 2019 by: Eric Peterson

Corn traded weaker overnight as overall U.S weather is mostly favorable and we head into both grain and silage harvest. Corn traded slightly higher yesterday closing at the high end of the trading range. Strength came from a better than expected export sales report. Export sales were excellent at 1,464,600mt, the biggest weekly sales since the end of February. Look for slightly weaker trade this morning on a lack of fresh news.

Soybeans closed three cents lower this morning giving back some of the gains from yesterday. November Soybeans are just above the 100 day moving average of $8.86. This level will The market found strength yesterday on good export sales and optimism regarding U.S/China relations. Look for weaker trade today as it seems China has taken a break from new U.S sales.

Spring wheat continued to rally overnight closing the session three cents higher. Support comes from crop concerns in Argentina and Australia. U.S harvest results for spring wheat continue to show extremely poor quality. Falling numbers are very low and will have to be delivered into the feed channel. Look for higher trade today as Minneapolis wheat continues to be the price leader.

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 BonusDaily Price PlusFutures at 8:00am
SH20(Mar)$9.35$9.32$9.18
CH20(Mar)$3.90$3.85$3.78
MWH20(Mar$5.32$5.25$5.21

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 PremiumNew Crop TargetTrigger Date
.185.80 MWZ2011/20/2020
.2510.00 SX2010/23/2020
.204.10 CZ2011/23/2020

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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