Morning Market Wire

Thursday March 4th, 2021                                               By: Eric Peterson

Corn traded lower overnight on weakness in soybeans and wheat, along with the strength in the U.S dollar.  Prices drew additional pressure from lack of fresh supportive news.  2021 acres continue to be debated but are likely to be higher than the USDA outlook.  Look for choppy, volatile, rangebound trade to continue ahead of next week’s USDA report.     

Soybeans traded higher overnight with the July contract closing just off the session high of $13.99.  Delays in the Brazilian harvest and optimism for increased demand for U.S soybeans continues to provide underlying support.  Look for higher trade today on tighter stocks and demand optimism.    

Spring wheat traded two sided overnight with the May contract trading an eight cent range.  The market doesn’t seem to know which direction to go after the recent days of volatility, overall feels rangebound.  Russia winter wheat conditions are reported to made an improvement with the mild winter so far.  Look for mixed trade today on a lack of fresh supportive news.      

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
SX21 Oct21$12.85$12.40$12.27
CZ21 Oct21$4.99$4.85$4.73
MWZ21 Dec21$7.15$6.85$6.63
Old Crop PremiumNew Crop TargetTrigger Date
0.257.10 MWZ2111/19/21
0.3114.00 SX2110/22/21
0.305.00 CZ2111/19/21

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.

Morning Market Wire

Tuesday March 2nd, 2021                                               By: Eric Peterson

Corn traded two sided overnight with the May contract trading an eight cent range.  Corn seems to be lacking fresh fundamental news as exports remain strong.  2021 acres will be larger than a year ago but the western U.S remains dry.  Look for higher trade today on renewed concerns of tight stocks and strength in the wheat market.   

Soybeans traded higher the majority of the night before fading into the morning close.  The market found strength from meal and oil.  Delays in the Brazilian harvest and optimism for increased demand for U.S soybeans continues to provide underlying support.  Look for higher trade today on tighter stocks and demand optimism.    

Spring wheat traded overnight with the May contract closing at the session high of $6.40.  The market found strength on increased taxed on Russian wheat exports.  Russian wheat export taxes increased in an effort to curb rising domestic prices.  Look for higher trade today on growing demand optimism.    

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
SX21 Oct21$12.85$12.40$12.14
CZ21 Oct21$4.99$4.85$4.67
MWZ21 Dec21$7.15$6.85$6.61
Old Crop PremiumNew Crop TargetTrigger Date
0.257.10 MWZ2111/19/21
0.3114.00 SX2110/22/21
0.305.00 CZ2111/19/21

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.

Morning Market Wire

Friday Feb 26, 2021                                               By: Eric Peterson

Corn traded lower overnight the entire night as month end and speculative selling continues.  The May contract currently sits 35 cents off the contract high from January.  $5.40 appears to be the first support level, then $5.25.  Look for lower trade today on follow through weakness from yesterday and the disappointing exports. 

Soybeans continues yesterday’s slide lower overnight and are trading near the lower end of the range this morning.  From yesterday’s high to today’s low, May soybeans have dropped almost 70 cents.  There is growing concern about African Swine Fever cases rising in China, putting pressure on soy futures for China and the U.S  Look for weaker trade as month end and speculative selling add to the pressure. 

Spring wheat was lower overnight on spillover weakness from corn and soybeans.  The market continues to trade lower on technical and poor weekly export sales.  Prices drew additional pressure from increased world production estimates and easing concerns of significant damage to the inter wheat crop from the recent cold snap across the U.S. 

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
SX21 Oct21$12.85$12.40$12.13
CZ21 Oct21$4.99$4.85$4.67
MWZ21 Dec21$7.15$6.85$6.63
Old Crop PremiumNew Crop TargetTrigger Date
0.257.10 MWZ2111/19/21
0.3014.60 SX2110/22/21
0.305.00 CZ2111/19/21

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.

Morning Market Wire

Thursday Feb 25, 2021                                               By: Eric Peterson

Corn traded lower overnight with the May contract closing ten cents lower.  The market was under pressure after a disappointing export sales release.  New crop corn saw some strength overnight with the December contract hitting a new contract high at $4.79.  Look for mostly weaker trade due to poor export sales. 

Soybeans were mixed overnight with the May contract trading to both a 6 week high and new contract high. The products were stronger as well, with May soyoil also setting a new contract high.  Weekly soybean export sales were 167,900 tonnes, below estimates that ranged from 200,0000 to 800,000 tonnes.  Look for weaker trade to start the day. 

Spring wheat traded lower the majority of the overnight session with the May contract closing two cents off the overnight low.  The market saw a sharp drop after the weak export sales report was released.  Weekly export sales were 167,700 tonnes, below estimates that ranged from 250,000 to 700,000 tonnes.  Look for mostly 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 BonusDaily Price PlusFutures at 8:00am
SX21 Oct21$13.00$12.60$12.40
CZ21 Oct21$4.99$4385$4.73
MWZ21 Dec21$7.15$6.85$6.69
Old Crop PremiumNew Crop TargetTrigger Date
0.307.10 MWZ2111/19/21
0.2515.00 SX2110/22/21
0.304.60 CZ2111/19/21

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.

Morning Market Wire

Wednesday Feb 24, 2021                                               By: Eric Peterson

Corn saw two sided trade overnight with the May contract trading a relatively narrow five cent range.  December corn is just off yesterday’s contract high of $4.74.  Overall demand remains decently strong, both domestic and export, and seeing few signs that demand has slowed.  Look for mostly higher trade to start the day. 

Soybeans continue to charge higher as the trade looks at a tight U.S balance sheet, and slow harvest pace in Brazil.  On a technical chart, May soybeans broke out to the upside of the pennant formation they have been trading for the month.  A private analytics firm raised their estimate for the 2020/2021 Brazilian soybean crop from 133 million tonnes to 136 million tonnes.  Look for continued strength today.         

Spring wheat traded mostly higher overnight as the market continues to digest the winter weather in the U.S. wheat territory as they remain unsure how much damage has been done by the recent cold snap.  The December contract has hit the contract high of $6.71 for three consecutive days now and may make a move one way or the other.  Look for mostly higher 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 BonusDaily Price PlusFutures at 8:00am
SX21 Oct21$13.00$12.60$12.27
CZ21 Oct21$4.99$4.85$4.73
MWZ21 $7.15$6.85$6.73
Old Crop PremiumNew Crop TargetTrigger Date
0.307.10 MWZ2111/19/21
0.2515.00 SX2110/22/21
0.304.60 CZ2111/19/21

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.

Danger within: Know the risks of grain bin entry

Since 2014, Nationwide and partners including CHS, have provided 150 rescue tubes and grain bin safety training to local fire departments across 29 states to help keep farmers safe.

The interior of a grain bin is one of the most hazardous places on a farm, so the best way to resolve situations with stored grain is safely outside. If you must enter a bin, be sure to know what you might find and plan accordingly.

(more…)

Morning Market Wire

Tuesday Feb 23, 2021                                               By: Eric Peterson

Corn traded two sided but mostly higher overnight.  The December contract saw another new contract high as it closes in on $5.00.  Weekly export inspections were decent again this week as technical buying adds support to the market.  Look for mostly higher trade today following the strength in the soybean market.      

Soybeans surged higher overnight with the March contract 21 cents higher, 6 cents off the session high of $14.11.  The market drew strength from the slow harvest in Brazil coupled with rain in the forecast that will likely continue to slow harvest.  Brazil is behind the normal pace with scattered rains disrupting harvest, but overall rain continues to help and adds to ideas of increasing production.  Look for mostly higher trade today.       

Spring wheat was mostly flat overnight as the market is struggling to follow through on yesterday’s strength.  The trade continues to debate how much damage has been done to the winter wheat crop with the recent cold snap.  The monthly ratings for U.S winter wheat showed a decline in Kansas, the top U.S producer, and mixed results in the other states.                

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
SX21 Oct21$12.70$12.35$12.23
CZ21 Oct21$4.99$4.85$4.72
MWZ21 Dec21$7.15$6.85$6.67
Old Crop PremiumNew Crop TargetTrigger Date
0.307.10 MWZ2111/19/21
0.2514.00 SX2110/22/21
0.304.60 CZ2111/19/21

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.

Morning Market Wire

Monday Feb 22, 2021                                               By: Eric Peterson

Corn closed two cents higher this morning with the March contract trading a five cent range overnight.  The market saw firm trade overnight on active rumors that China was an active buyer of U.S corn last week for summer time slots.  Overall, corn futures remain in consolidation, nearly 30 cents off contract highs from earlier in February.  Look for mostly higher trade today.    

Soybeans saw choppy trade overnight and are trading mixed as the overnight session draws to a close.  November soybeans traded to a new contract high of $12.07 overnight before drifting lower.  Brazil received rain over the weekend, which is expected to continue this week and will likely delay soybean harvest.  Look for mostly mixed trade today.    

Spring wheat traded higher overnight with the March contract closing two cents off the session high.  News remains mostly routine as the market tries to figure out if the recent cold temps did any harm.  2021 U.S spring wheat acres could be at risk, the USDA will be surveying farmers shortly, as the survey could be quite interesting on March 31.  Look for mostly higher trade today led by the strength in Minneapolis.              

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
SX21 Oct21$12.50$12.25$11.66
CZ21 Oct21$4.85$4.65$4.63
MWZ21 Dec21$7.00$6.90$6.68
Old Crop PremiumNew Crop TargetTrigger Date
0.307.10 MWZ2111/19/21
0.2514.00 SX2110/22/21
0.304.60 CZ2111/19/21

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.

Morning Market Wire

Friday Feb 12, 2021                                               By: Eric Peterson

Corn closed nearly unchanged this morning with the March contract trading a six cent range.  Nearby technical support is at $5.25 and the more significant long term support at $5.00.  The weekly export sales released yesterday were impressive at 1.448mmt which was above market expectations.  Look for slightly higher trade today following the strength from overnight. 

Soybeans like corn saw some resistance yesterday when it tried to rally.  It seems to reflect the comfort of the current supplies.  Immediate needs are largely met so there are no current appearance of a short squeeze developing.  The upside seems to be limited for now.  Calls are for higher trade following the overnights. 

Spring wheat closed nearly unchanged this morning as fresh wheat information seems to be pretty much non-existent.  Winterkill risks continue to be monitored but we wont see the potential damage until later this spring.  Calls are for mixed trade today as the market is likely to follow corn and soybeans.            

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.

Morning Market Wire

Tuesday Feb 9, 2021                                               By: Eric Peterson

Corn closed nearly unchanged this morning with the March contract trading a seven cent range overnight.  March corn saw a new contract high overnight at $5.70.  December corn is around $4.60, just off the contract high of $4.65.  The average ending stock estimate for today’s report is a decline to 1.363 billion bushels compare to the January’s 1.552 billion.  Look for mostly higher trade today ahead of the WASDE report.        

Soybeans continued the upward trend overnight with the March contract hitting $14.00.  The USDA is expected to lower the U.S carryout from 140mb, carryout has been declining for months now.  Demand has shown little to no signs of easing as exports and crush remain strong.  The Feb WASDE report is expected to show a reduction to the ending stocks to 119 million bushels compared to January’s 140 million.  Look for strength ahead of the report.    

Spring wheat was slightly weaker overnight after a somewhat disappointing export data yesterday.  Winterkill risk is the most dominant feature for wheat today as cold temperatures are raising concern.  The WASDE report is expected to show very minor changes today.  The average trade estimate for ending stocks is 834 million bushels basically unchanged from last month’s estimate of 836 million.  Calls are for slightly weaker trade following the overnight action.        

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
SX21 Oct21 $12.50$12.25$11.88
CZ21 Oct21$4.85$4.65$4.57
MWZ21 Dec21$7.15$6.95$6.63
Old Crop PremiumNew Crop TargetTrigger Date
0.277.20 MWZ2111/19/21
0.2514.00 SX2110/22/21
0.324.60 CZ2111/19/21

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.

© 2021 CHS Inc.