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CHS Drayton Morning Market Wire

All locations will be closing Wednesday January 30 at 11:00am for Safety Training.

We will be having Marketing Meetings on February 5th at 9:00am in Cavalier and 12:00pm in Drayton.

Market Summary

Corn closed unchanged this morning with the March contract trading a narrow one cent range overnight.  March corn is holding above most moving averages and 8 cents below its 200 day moving average of $3.88.  Support comes from adverse weather in South America and ideas of a smaller corn yield for the final production numbers.  Look for mostly steady trade today as the market awaits fresh supportive news.

Soybeans traded lower overnight as South America received some light, scattered precipitation.  The March contract is currently just below the 200 day moving average of $9.22.  Prices garnered support last week on ideas of sizeable reductions to the Brazilian soybean crop from continued dryness.  Look for lower trade on rains in Brazil and lack of Chinese interest in U.S soybeans.

Spring wheat traded higher overnight bouncing off the low of the recent trading range.  Ideas that Russian exports may slowdown also provided support.  U.S/China trade talks will also be focus; will they confirm the recent rumor that China will buy 3-7mmt of U.S wheat?  Look for higher trade today on hopes of improving demand of U.S supplies.

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
SX19 (Nov)$10.10$9.90$9.61
CZ19 (Dec)$4.25$4.21$4.02
MWZ19 (Dec)$6.28$6.15$6.02

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 PremiumNew Crop TargetTrigger Date
0.166.40 MWZ1911/20/2019
0.2510.20 SX1910/23/2019
0.184.10 CZ1911/20/2019

Futures markets as of 8:30 AM

Minneapolis Wheat:MWEH195.77+0.02
Kansas City HRW:KWEH195.12+0.02
Soybeans:SH199.20-0.04
Corn:CH193.800.00

CHS Drayton Cash Prices

Spring Wheat:5.32-0.45 basisJanDelivered Drayton
Winter Wheat:4.32-0.80 basisJanDelivered Drayton
Corn:3.26-0.54 basisJanDelivered Drayton
Soybeans:7.90-1.30 basisJanDelivered 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%

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.

CHS Drayton: Morning Market Wire

Monday December 17, 2018 by: Eric Peterson –
Be sure to Like CHS Drayton on Facebook!

Market Summary

Corn closed a fraction higher this morning with the March contract trading a narrow two cent range overnight. Since the beginning of the month, March corn futures have been stuck in a sideways trading range between $3.80 and $3.87. All eyes will be watching report for additional Chinese business. The trade appeared to be disappointed with last week’s totals. The prospect of China buying U.S corn has trader’s hopeful another rally may happen.

Soybeans traded higher overnight as trade optimism continues to offer support but the January contract closed six cents off session highs. Technically, the next level of resistance is $9.28 with support at last Monday’s gap from $9.09-$9.09¾. Weather forecasts are showing rain for Brazil over the next 10 days. This should stabilize an excellent crop that experienced some dryness. Look for lower trade today if we do not hear of additional soybean sales to China this morning.

Spring wheat closed a penny higher this morning as trade remains choppy. The March contract remains at the top end of the 30-60 day trading range. It now looks like winter wheat acres will be down 5% when initial estimates were for a 10-15% increase. All wheats are trading stronger in hopes to see better exports in the near futures.

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
SX19 (Nov)
$10.06
$9.84$9.53
CZ19 (Dec)
$4.28
$4.14
$4.04
MWZ19 (Dec)
$6.31$6.23$6.12

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
.186.50 MWZ1911/20/2019
.2510.20 SX1910/23/2019
.164.10 CZ1911/20/2019

Futures markets as of 8:30 AM

Minneapolis Wheat:MWEH195.85+0.01
Kansas City HRW:KWEH19 5.225.22+0.04
Soybeans:SF199.04+0.03
Corn:CH193.850.00

CHS Drayton Cash Prices

Spring Wheat:5.35-0.50 basisDecDelivered Drayton
Winter Wheat:4.42-0.80 basisDecDelivered Drayton
Corn:3.29-.056 basis
DecDelivered Drayton
Soybeans:7.79-1.25 basis
DecDelivered 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%

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.

CHS announces equity management decisions


At its September meeting, the CHS Board of Directors made a number of decisions regarding equity management. The following letter from CHS Board Chairman Dan Schurr outlines these decisions:

Dear Cooperative Owner,

CHS was built on the shared values of managing our business with the highest integrity, building lasting and mutually rewarding relationships, and partnering for our collective success.

These values guide every decision your CHS Board of Directors makes on your behalf. Thanks to the dedication and hard work of those owners and employees that came before us, CHS is a cooperative that’s been built for the long haul. Your Board of Directors will ensure that tradition continues. It’s with this spirit that we share recent Board decisions around equity management.

Despite solid performance in our core businesses, a few large events have resulted in substantial fiscal 2017 financial losses in certain patronage-based businesses. These events included a loss attributed to a large producer loan and business unit asset impairments in the United States.

(more…)

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