Corn closed a fraction lower this morning after trading a narrow two cent range overnight. Trade is quiet ahead of today’s USDA WASDE report which will be released a at 11:00am. The average trade estimate on yield today is 176.5 bpa, which would be right behind the record from last year of 176.6bpa. Ending stocks are expected to rise from 1.552 billion to 1.636 billion bushels. All eyes will be on today’s report as an estimated yield under 175bpa will be viewed as bullish, and if over 178 bpa it would be bearish.
Soybeans drifted lower overnight ahead of today’s report as the USDA may show a record production at 4.4bb. The average trade estimate for soybean yield is 49.6 bpa with a range of 48-51.5, compared to 49.4bpa last month. World soybean stocks are estimated at 99.33mmt compared to 98.27mmt in July. Look for mostly lower trade as today’s yield estimate will be traded but ultimately market direction will come down to U.S/China trade.
Spring wheat traded lower overnight down six cents at one point last night. The market traded lower as dryness in Europe is becoming old news and can continuing dryness actually cause much more harm? Carryout is expected to drop 24 million to 961 million bushels. World wheat ending stocks are estimated at 256.42mmt vs. 260.88mmt in July. Look for mostly quiet trade ahead of the report.
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||5.79||-0.01|
|CHS Drayton Cash Prices|
|Spring Wheat:||5.68||-0.60 basis||Aug||Delivered Drayton|
|Winter Wheat:||4.99||-0.80 basis||Aug||Delivered Drayton|
|Corn:||3.09||-0.60 basis||Aug||Delivered Drayton|
|Soybeans:||7.49||-1.50 basis||Aug||Delivered Drayton|
|Spring Wheat:||5.68||-0.65 basis||Aug/Sept||Delivered Drayton|
|Corn:||3.07||-0.75 basis||Oct/Nov||Delivered Drayton|
|Soybeans:||7.49||-1.50 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.