Posts By: Eric Peterson

Morning Market Wire 3/31

***To protect our employees during the Coronavirus Pandemic, Drayton and all locations will be closed 4/03 and every Friday until further notice***

Corn was lower once again overnight as we test contract lows from a few weeks ago.  Today’s USDA planted acres report will be the main focus.  Trade estimates for U.S corn planted acres range from 92.5-96.4 million acres.  The average trade estimate is 94.3 million.  Last year’s USDA number was 89.7 million planted acres.  Look for mixed to weaker trade today.    

Soybeans traded lower overnight with the May contract closing two cents lower.  Several more cargoes of Brazil soybeans were traded with China for May and June shipment.  Brazil soybean harvest is estimated at 80% complete.  Trade estimates for today’s report range from 82.7-87.1 million acres, with the average at 84.865.  Look for lower trade this morning ahead of the report.    

Spring wheat saw mostly quiet trade overnight as the May contract traded a narrow range.  News is becoming routine as grocery shelves are not as depleted as a couple of weeks ago.  Spring wheat planted acres are expected to come in around 12.631 million acres.  Look for slightly lower 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 BonusDaily Price PlusFutures at 8:00am
SX20 Oct20$9.07$9.00$8.72
CZ20 Oct20$3.89$3.70$3.58
MWH20 Jan21$6.06$6.00$5.73

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 are 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
0.186.00 MWZ2011/20/20
0.139.80 SX2010/23/20
0.124.00 CZ2011/20/20

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 3/27

***To protect our employees during the Coronavirus Pandemic, Drayton and all locations will be closed 3/27 and every Friday until further notice***

Corn traded a narrow three cent range overnight as the market consolidated ahead of next week’s USDA acres report.  Average trade estimates is 94.328 million acres with estimates from 92.5 to 96.4 million.  The 2019 acres were 89.7 million acres.  Ethanol continues to dominate the headlines as many plants slow their grinds and others completely stop their grinds.  Ethanol storage capacity is filling as the consumer is driving less.  Look for slightly lower trade today. 

Soybeans closed two cents higher this morning with the May contract trading a eleven cent range.  Support came overnight as Argentina is taking the steps towards COVID-19 protocols by slowing truck movement and exports.  USDA prospective planting report will be released next Tuesday with the average trade estimate at 84.865 million acres.  This compares to last years 76.1 million acres.  Look for mostly higher trade today as a stronger soymeal market seems to be providing strength. 

Spring wheat once again traded higher overnight as the overall fundamental picture can be viewed as positive.  Domestic and flour mills demand remains strong as the American consumer stays home.  Mills and bakers try to refill the pipelines.  Overall global demand for wheat remains strong with yesterday’s reports showing sales to China.  Look for mostly higher trade today as demand remains strong. 

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
SX20 Oct20$9.23$9.00$8.82
CZ20 Oct20$3.98$3.80$3.66
MWZ20 Dec20$6.08$5.90$5.75

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 are 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 Target Trigger Date
0.186.00 MWZ2011/20/2020
0.139.80 SX2010/23/2020
0.124.00 CZ2011/20/2020

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

***To protect our employees during the Coronavirus Pandemic, Drayton and all locations will be closed 3/27 and every Friday until further notice***

Corn traded lower overnight with the May contract closing just off the overnight low of $3.44.  The market continues to trade lower as ethanol plants slow or stop their grind.  The ethanol industry struggles with low crude and unleaded gasoline prices as many state governments issue “stay at home” orders for non-essential workers due to COVID 19. Look for mostly lower trade today as corn carryout continues to grow. 

Soybeans traded lower overnight but bounced back this morning closing nearly unchanged. Strength in the soymeal market supported soybeans late in the overnight session.  May soybeans are still twenty cents off yesterday’s high, but still sixty cents off last week’s low.  Look for mostly lower trade as the economic outlook appears rough.    

Spring wheat closed a fraction lower this morning, however the overall fundamental outlook appears positive.  Domestic and global flour demand remains strong as the consumer stays home to battle COVID-19.  Mills try to refill depleted grocery stores.  Look for slightly lower trade today as the market may need fresh news to trade on. 

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
SX20 Oct20$9.19$9.00$8.76
CZ20 Oct20$4.02$3.80$3.66
MWH20 Jan2021$6.07$5.90$5.73

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 3/25

***To protect our employees during the Coronavirus Pandemic, Drayton and all locations will be closed 3/27 and every Friday until further notice***

Corn traded two sided overnight with the May contract closing the overnight session three cents higher.  Strength came overnight on news of the economic stimulus package but there is still underlying pressure of poor ethanol demand.  Ethanol production stats will be released this morning.  Acreage polls for 2020 continue to circulate with estimates any where from 92-95 million.  Look for slightly better trade today but limited gains as ethanol issues continue.      

Soybeans closed nearly unchanged this morning after trading a wide 17 cent range overnight.  The markets saw a boost after Congress and the White House agreed on an economic stimulus package to battle the coronavirus impact on the economy.  There continues to be optimism that China will buy more U.S soybeans has there is news that their supply has tightened. Look for mostly higher trade today. 

Spring traded was mostly higher overnight as there isn’t much fresh news to push the market.  Strong domestic and global flour demand remain the story as mills as mills and bakers try to refill the grocery shelves that are stressed by the world’s consumer.  Look for mixed trade as the market may need some fresh news to continue move upward.   

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
SX20 Oct20$9.23$9.00$8.78
CZ20 Oct20$4.04$3.80$3.67
MWH21 Jan21$6.10$6.00$5.72

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 March 23, 2020                                               By: Eric Peterson

Corn traded two sided overnight with the May contract closing a fraction higher.  Corn was lower the majority of the night but found support from wheat and soybeans in the close.  Cron continues to trade well within last week’s trading range as economic uncertainty because of Covid-19 pushes sizable assets to the sidelines.  Look for mixed trade today as the U.S ethanol profitability will be a major influencer on price direction.    

Soybeans traded higher overnight with the May contract closing a penny off the overnight high of $8.76.  Support came overnight on continued talk of closures/slowdowns at some South America ports that could slow loading of soybeans and soymeal and disrupt global trade. 

Spring traded higher overnight with the May contract closing ten cents higher.  The wheat market seems the most stable as there is some worry about the global and U.S supply.  Chicago and KC futures see the higher levels in 30 days as Chicago wheat trades above the 30, 50 and 200 day moving averages.  Look for mostly higher trade today on increasing demand. 

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 PlusFutures at 8:00am
SX20 Oct2020$9.14$9.00$8.70
CZ20 Oct 2020$3.91$3.80$3.64
MWZ20 Dec2020$5.96$5.75$5.60

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 are 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 TargetFutures at 8:00am
0.146.00 MWZ2011/20/20
0.13$9.6010/23/20
0.134.00 CZ2011/20/20

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 3/20

Friday March 20, 2020                                               By: Eric Peterson

Corn saw some follow through strength overnight as the May contract is now eighteen cents removed from the contract low.  However, it does not look like fundamentals are strong enough to push it much higher as a 1.9bb carryout is likely growing.  Look for mostly higher trade today on strength in the energy markets and weakness in the U.S dollar. 

Soybeans closed eleven cents higher this morning with the May contract closing two cents off the overnight high.  However, soybeans are only three cents higher for the week.  Soybeans continue to move higher on possible closures at South American ports and ideas that U.S acres will be down.  Look for mostly higher trade today on hopes that China will begin buying U.S soybeans.    

Spring traded higher overnight with the May contract closing at the overnight high of $5.25.  Strength came overnight on news that the U.S may sell a few cargoes of wheat to China. Canada’s 20/21 all wheat crop is estimated at 33.5mmt.  This compares to the USDA 2019/2020 estimate at 32.25mmt.  Look for higher trade today on improving demand. 

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
SX20 Oct20$9.09$9.00$8.62
CZ20 Oct 20$3.93$3.80$3.67
MWZ20 Dec20$5.92$5.85$5.55

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 are 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 Target Trigger Date
0.146.00 MWZ2011/20/2020
0.139.60 SX2010/23/2020
0.134.00 CZ2011/20/2020

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 March 19, 2020                                               By: Eric Peterson

Corn closed five cents higher this morning after yesterday’s selloff.  May corn has stayed above the technical support level of $3.30.  The last time crude was around $20/barrel, corn prices were around $2.00 -$2.50.  Look for higher trade today on a rebound in the oil sector, while virus concerns will limit upside potential.      

Soybeans traded higher overnight with the May contract closing six cents off the overnight high of $8.45.  May soybeans saw a wide twenty cent range overnight.  Strength is coming from hopes of increased demand for meal and logistical issues in Brazil ports.  Additions support is stemming from ideas that U.S soybean acres will be down.  Look for mostly higher trade today.     

Spring traded slightly higher overnight with the May contract closing three cents higher.  Minneapolis wheat seems to be following the strength in the Kansas City and Chicago markets.  Kansas City wheat is now 40 cents off recent lows.  Support comes from increased demand and the possibility of renewed Chinese business.  Look for mostly higher trade today on improving demand.

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
SX20 Oct20$8.97$8.65$8.48
CZ20 Oct20$3.94$3.80$3.59
MWZ20 Dec 20$5.77$5.65$5.45

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 are 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
0.135.90 MWZ2011/20/20
0.119.60 SX2010/23/20
0.104.00 CZ2011/20/20

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 3/18

Wednesday March 18, 2020                                               By: Eric Peterson

Corn traded lower overnight continuing its downward spiral.  Pressure came overnight on weakness in the energy markets and expectations for a big increase in corn acres this spring.  May corn dipped below technical support of $3.40 with the next level at $3.30.  Nearly all corn contracts hit new lows overnight.  Look for continued weaker trade today.    

Soybeans found strength on the front end overnight with the May contract closing four cents higher.  The market was able to find support on the strength in the soymeal market and dryness in South America, despite a lack of demand for U.S soybeans.   Argentina soils remain dry resulting in crop losses and reductions in overall production.  Look for slightly higher trade today.    

Spring traded higher overnight as it seems we have found a bottom for now.  Mill and domestic demand remain steady as the recent board drop has slowed movement.  The consumer panic to buy food as workers stay home may result in an uptick in baking and flour demand.  Look for slightly higher trade today on bargain buying and firming basis values. 

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
SX20 Oct20$8.84$8.65$8.42
CZ20 Oct20$3.90$3.80$3.59
MWZ20 Dec20$5.77$5.65$5.44

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 are 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
0.135.90 MWZ2011/20/2020
0.119.60 SX2010/23/2020
0.104.00 CZ2011/20/2020

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 3/16

Monday March 16, 2020 By: Eric Peterson

Corn traded lower overnight with the May contract closing at the session low of $3.60. May corn broke though the recent technical support level of $3.65. Prices continue to drop on weakness in the outside markets, despite recent demand. Brazil’s second corn crop suffers from dryness in central and south central areas. Look for weaker trade today on continues weakness in outside markets.

Soybeans hit a new contract low overnight but managed to close four cents off the low. May soybeans hit its lowest level since September 2019. The crush market has rebounded lately as the bushels crushed for February were strong. NOPA reported a new record for the month of February at 164.959 million bushels. Look for lower trade on South America harvest and economic uncertainty.

Spring traded lower overnight with the May contract trading a six cent range. Wheat prices were lower on continued fears from the spread of the Coronavirus and the fate of the of the global economy. Major wheat exporters in the world see ending stocks shrink to their lowest level since 2013/14. Stocks/use ratio is also expected to be at 14.22% the smallest since 2007/08. Look for lower trade today on weakness in outside markets.

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.)

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 are 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!

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 Annual Meeting Cancelled

Safety is a core value of CHS, and the safety of our employees, producers and community members includes helping to protect your health and that of your families. Out of an abundance of caution due to growing international concerns about coronavirus (COVID-19), CHS has suspended meetings and events until further notice. This decision impacts site tours, annual meetings and other event This includes the cancellation of our upcoming annual meeting to be held on Monday, March 16th at Hastings Landing in Drayton, N.D. We regret any inconvenience this may cause and sincerely thank you for your business over the past year.

This document and other CHS Inc. publicly available documents contain, and CHS officers and representatives may from time to time make, “forward–looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Report Act of 1995. Forward–looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward–looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on CHS current beliefs, expectations and assumptions regarding the future of its businesses, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of CHS control. CHS actual results and financial condition may differ materially from those indicated in the forward–looking statements. Therefore, you should not place undue reliance on any of these forward–looking statements. Important factors that could cause CHS actual results and financial condition to differ materially from those indicated in the forward–looking statements are discussed or identified in CHS filings made with the U.S. Securities and Exchange Commission, including in the “Risk Factors” discussion in Item 1A of CHS Annual Report on Form 10–K for the fiscal year ended August 31, 2019. Any forward–looking statements made by CHS in this document are based only on information currently available to CHS and speak only as of the date on which the statement is made. CHS undertakes no obligation to update any forward–looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise except as required by applicable law.

© 2020 CHS Inc.

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