Corn traded slightly higher overnight. Currently, the December contract is at $3.47, just above the contract low of $3.42 which is acting as a technical support level. The 50 day moving average sits well above at $3.67. Overall demand for U.S corn remains strong and steady, but a few signs of demand softening. Look for mixed trade today with limited gains due to big crop ideas.
Soybeans trade was weaker overnight as the U.S/China trade war continues to weigh on the market. Technically, support is at the contract low of $8.12 with the 50 day moving average above at $8.62. The market found support yesterday on spec short covering. But ultimately, the U.S is not trading with the world’s largest soybean buyer, which is not friendly short term or long term.
Spring wheat closed two cents lower this morning, with the December contract closing at the overnight low of $5.85. Technically, the December contract is just above the 20 day moving average of $5.81. Australia has been dry this week, and that continues to lend support on ideas of a smaller crop. Look for mixed to lower trade today.
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:||KWEZ18||5.23||-0.03|
|CHS Drayton Cash Prices|
|Spring Wheat:||5.07||-0.78 basis||Sept||Delivered Drayton|
|Winter Wheat:||4.43||-0.80 basis||Sept||Delivered Drayton|
|Corn:||2.72||-0.75 basis||Sept||Delivered Drayton|
|Soybeans:||6.58||-1.70 basis||Sept||Delivered Drayton|
|Spring Wheat:||5.30||-0.55 basis||Dec||Delivered Drayton|
|Corn:||2.69||-0.75 basis||Oct||Delivered Drayton|
|Soybeans:||6.58||-1.70 basis||Oct||Delivered Drayton|
Spring Wheat Protein Scales
-.05 cents ea. 1/5 down from 14.0% to 13.0%
-.05 cents ea. 1/5 down from 13.0% to 12.0% (Max -0.50)
+.02 cents ea. 1/5 from 14.0% to 15.0%
Any information, materials and opinions (together, “CHS Materials”) presented by CHS to the recipient of such CHS Materials, whether in written or oral form, is for general information purposes only and does not constitute legal or other professional advice and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. CHS makes no warranties, representations or undertakings, whether express or implied, about any CHS Materials (including, without limitation, any as to the quality, accuracy, completeness or fitness for any particular purpose of any CHS Materials). Recipient agrees that CHS shall not be liable to recipient relating to or resulting from the use of any CHS Materials or any inaccuracies or errors therein or omissions therefrom.