Morning Market Wire

Monday Aug 3, 2020                                               By: Eric Peterson

Corn closed a penny higher this morning with the September contract trading a narrow three cent range.  Today’s condition report is expected to show a 1% improvement.  The announced Friday morning a sale of 114.3tmt corn to Mexico for the 20/21 crop year.  Look for mixed trade today as expectations of a large crop continue to grow, but prices are again finding some buying interest near contract lows.    

Soybeans traded two sided overnight as the November contract once again nears the $9.00 mark.  U.S weather is really not too bad, although some areas could use a shot of rain.  Overall, still feels like the crop could get bigger.  Today’s conditions report is expected to show a 1% good/excellent increase.  Look for slightly higher trade today as November soybeans filled the gap lower they made July 28th and are testing the $9.00 resistance level. 

Spring wheat opened the overnight session lower as the September contract nears the contract low of $5.06.  The U.S wheat supply continues to grow as we harvest winter wheat and spring wheat.  As expected we are beginning to see the Russia production estimates increase.  Look for weaker trade today as all three wheat classes gapped lower overnight.     

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
SH21 Jan21$9.21$9.15$9.01
CH21 Jan21$3.48$3.45$3.39
MWN21 June21$5.81$5.67$5.55

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