Morning Market Wire

Friday Aug 9, 2019
by: Eric Peterson

Market Summary

Corn closed two cents higher this morning, with the December contract trading a narrow three cent range. Corn traded higher overnight in light volume as the market waits for Monday’s report. The December contract was able to hold above the 100 day moving average of $4.15. Look for higher trade today on pre report positioning and forecasts for drier weather. 

Soybeans traded higher overnight continuing its rally from yesterday. The November contract is currently approaching its 20 day moving average of $8.92. There has been zero progress with U.S/China trade war as neither country is willing to back down. Which ultimately means that the U.S is not doing business with the world’s largest soybean buyer..not friendly.  Look for continued strength today on pre report positioning.  

Spring wheat trade was mixed overnight with the September contract trading a narrow one cent range. There has been not much fresh news as the market awaits the USDA report on Monday; and wheat will likely get its direction from the corn market. Look for steady to higher trade on pre report positioning.   

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)$9.38$9.30$9.14
CH20 (Mar)$4.50$4.40$4.30
MWH20 (Mar)$5.58$5.55$5.47

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
0.186.00 MWZ2011/22/2020
0.169.40 SH202/22/2020
0.204.30 CH202/22/2020

Futures markets as of 8:30 AM

Minneapolis Wheat:MWEU195.210.00
Kansas City HRW:KWEU194.19+0.01

CHS Drayton Cash Prices

Spring Wheat:4.51-0.70 basisAugDelivered Drayton
Winter Wheat:3.39-0.80 basisAugDelivered Drayton
Corn:3.48-0.65 basisAugDelivered Drayton
Soybeans:7.54-1.35 basisAugDelivered Drayton

Spring Wheat Protein Scales

-.02 cents ea. 1/5 down from 14.0% to 13.0%
-.02 cents ea. 1/5 down from 13.0% to 12.0% (Max -0.20)
+.02 cents ea. 1/5 from 14.0% to 15.0%

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