Corn traded was quiet overnight with the July contract closing a fraction lower this morning. With the USDA report now behind us, the trade will turn its focus to weather moving forward. The July contract went off the board at $3.3075, down 6.25 cents and 1.75 cents off the 2017 low. Look for mostly weaker trade today as the weather for pollination is better, and we just don’t have a bullish driver right now.
Soybeans traded two sided overnight, with the August contract hitting a new low. The July contract expired Friday, making August the lead contract. U.S weather remains mostly favorable with the critical weather still ahead in August. As the global trade war with China progresses look for basis to continue to weaken. However, if an agreement can be made, basis should go back to normal levels.
Spring wheat trade was lower overnight as winter wheat harvest continues with good yields, quality and protein. Russian wheat picked up some much-needed precipitation over the weekend. Russian wheat exports will top 40mmt in 2017/18. This easily will make Russia the world’s biggest wheat exporter. Look for mostly lower trade today on weak demand and increasing stocks.
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 is 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|
|Futures markets as of 8:30 AM|
|Kansas City HRW:||KWEU18||4.89||-0.02|
|CHS Drayton Cash Prices|
|Spring Wheat:||4.90||-0.40 basis||July||Delivered Drayton|
|Winter Wheat:||4.09||-0.80 basis||July||Delivered Drayton|
|Corn:||2.89||-0.52 basis||July||Delivered Drayton|
|Soybeans:||7.00||-1.18 basis||July||Delivered Drayton|
|Spring Wheat:||4.75||-0.55 basis||Aug/Sept||Delivered Drayton|
|Corn:||2.89||-0.65 basis||Oct/Nov||Delivered Drayton|
|Soybeans:||7.04||-1.30 basis||Oct||Delivered Drayton|
Spring Wheat Protein Scales
-.08 cents ea. 1/5 down from 14.0% to 13.0%
-.08 cents ea. 1/5 down from 13.0% to 11.5% (Max -1.15)
+.08 cents ea. 1/5 from 14.0% to 15.0%
+.00 cent bump at 15.0% pro
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