Morning Market Wire

Monday November 11, 2019 by: Eric Peterson

Happy Veteran’s Day! Thank you to all that have and still serve our nation!

Drayton will be closed for dumping today as we are loading a train.

Corn gapped lower overnight as the continued harvest continues to pressure the market. On Friday’s report, the USDA lowered 2019/2020 yield to 167.0 bushels per acre, lowering production to 13.661bb. Harvest progress was last reported at 52% with expectations of being 60-70% complete through Sunday. Look for corn to follow soybeans lower as there is not much fresh news to trade.

Soybeans were under pressure overnight after Friday’s bearish USDA report. The USDA left the 2019/20 harvested acres and yield unchanged from their October report. The only change made to either balance sheet was 15.0 mb reduction in crush for 2019/20, which raised ending stocks. Look for mostly lower trade today after a negative report on Friday and a slow pace of trade negotiations with China.

Spring wheat traded weaker overnight with the December contract closing just above the overnight low of $5.15. Technically, support lies below at $5.13 with resistance above at $5.27. The market seems to have a weaker tone despite the USDA tightening U.S carryout last Friday to 1.014bb. On a thin news morning, look for all three wheat markets to follow corn and soybeans lower.

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 8am
SX20 Oct20$10.17$10.05$9.62
CZ20 Oct20$4.22$4.16$3.99
MZ20 Dec20$6.11$6.05$5.70

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
0.246.10 MWZ2011/20/20
0.2410.20 SX2010/23/20
0.15$4.20 CZ2011/23/20

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

Friday November 8, 2019 by: Eric Peterson

Corn is trading slightly lower this morning as traders await the November WASDE report that will be released today at 11:00am. The average trade estimate for corn yield is 167.5 bushels per acre, down from USDA’s previous projection of 168.4 bushels per acre. Trade estimates the last three reports have been too low compared to the USDA projections and the market seems to be expecting another negative report. Look for mostly steady trade ahead of the report.

Soybeans traded two sided overnight as the market awaits for today’s report. Estimates for soybean yield on this morning’s report average at 46.6 bushels per acre, compared to last months 46.9bpa. Production estimates are averaging 3.51 billion bushels, compared to 3.550 billion bushels last month. The trade is also estimating a drop in acres due to resurveying of Minnesota and North Dakota. Look for steady trade ahead of today’s report.

Spring wheat as well as all of the wheat exchanges traded lower overnight. Weakness came as demand remains poor and there are no fresh headlines to trade. Technical weakness and spillover weakness in the corn market provided additional pressure. Look for sideways to lower trade as the market continues to fail to find anything new to trade.

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$10.24$10.05$9.71
CZ20 Oct20$4.23$4.16$3.98
MZ20 Dec20$6.11$6.05$5.74

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
0.246.10 MWZ2011/20/2020
0.2910.20 SX2010/23/2020
0.154.20 CZ2011/23/2020

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 November 7, 2019 by: Eric Peterson

Drayton will be dumping until 5:00pm today due to the excessive moisture of the crop.

Corn closed nearly unchanged this morning as traders position themselves in front of the WASDE report out tomorrow. Delays in harvest progress from high moisture is also providing support to the market. There could be a fair number of acres that have corn standing well into the winter months, if not all the way to next spring. Look for mostly rangebound trade today ahead of tomorrow’s report.

Soybeans traded higher overnight on renewed optimism surrounding the trade war. The Chinese commerce ministry stated that the U.S and China have remained in close communication and hopes both sides will address each other’s concerns in order to agree on phase one of the deal. Look for slightly higher trade today but ultimately quiet as the market expects a positive report tomorrow.

Spring wheat closed nearly unchanged this morning as the Minneapolis followed the weakness from Kansas City and Chicago markets. News is once again routine without any fresh news to change much. Look for slightly higher trade today due to an increase in world demand and concerning planting progress for Kansas City wheat.

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 Oct 20$10.23$10.05$9.72
CZ20 Oct 20$4.25$4.19$4.02
MZ20 Dec 20$6.16$6.10$5.81
Old Crop PremiumNew Crop TargetTrigger Date
0.286.10 MWZ2011/20/20
0.2810.20 SX2010/23/20
0.184.10 CZ2011/23/20

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

Wednesday November 6, 2019 by: Eric Peterson

Corn traded higher overnight with the December contract trading a narrow three cent range. It seems we are seeing pre-report positioning as people try to interpret yield reports ahead of Friday’s new supply/demand report. The trade is estimating the USdA yield projection will be released at 167.5bpa, compared to last month’s 168.4bpa. Look for improved weather conditions to allow for an increase in harvest progress which will pressure markets, but the market will find some direction from the report on Friday.

Soybeans closed a fraction lower this morning as the market continues to lack direction and traded within a narrow range overnight. The trade is expecting a friendly report on Friday for soybeans, harvested acres are expected to fall to 75.4 million acres, previously 75.6 million acres, due to the resurveying of Minnesota and North Dakota. Look for mostly narrow trade today as the market will have little to no direction until there is some confirmation of progress on the trade deal and until the report on Friday.

Spring wheat closed nearly unchanged this morning as the Minneapolis followed the weakness from Kansas City and Chicago markets. News is once again routine without any fresh news to change much. Look for slightly higher trade today due to an increase in world demand and concerning planting progress for Kansas City wheat.

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 Oct 20$10.25$10.10$9.72
CZ20 Oct20$4.25$4.19$4.02
MZ Dec 20$6.18$6.05$5.81

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
0.286.10 MWZ2011/20/20
0.2810.20 SX2010/23/20
0.184.10 CZ2011/23/20

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

Tuesday November 5, 2019 by: Eric Peterson

Corn is trading slightly higher this morning as harvest progress came in behind the average estimates. The crop progress report showed that U.S corn harvested is now at 52% harvested compared to 41% last week and a five year average of 75%. The market was expecting 54%. The November WASDE report will be released this Friday November 8th at 11am. Look for sideways to higher trade as harvest continues to lag behind and the market awaits the USDA report on Friday.

Soybeans futures traded slightly lower overnight as harvest continues to make progress and there are little supportive trade war headlines to push the market higher. The crop progress report showed harvest at 75% complete, in line with estimates and below the 5 year average of 87% complete. Look for slightly lower trade today as the markets await some sort of confirmation that a deal will be completed between the U.S and China.

Spring wheat found support overnight due to supportive demand in the world market. U.S winter wheat planting came in at 89% planted, slightly ahead of the 88% planted 5 year average. Winter wheat emergence was reported at 71% emerged vs. the 5 year average of 74%. Look for slightly higher trade today as world demand seems to be picking up.

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$10.29$10.05$9.73
CZ20 Oct20$4.23$4.21$4.04
MZ20 Dec20$6.20$6.10$5.81

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
0.286.10 MWZ2011/20/20
0.2810.20 SX2010/23/20
0.184.10 CZ2011/23/20

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

Monday November 4, 2019 by: Eric Peterson

Corn traded lower overnight as the U.S saw a heavy harvest weekend. Weather allowed producers to make decent progress. Harvest progress is expected to have reached 55% over the weekend as there were no major weather issues across the Midwest. Harvest progress was 41% complete last week, and 74% complete last year at this time. Last Friday a few yield estimates were released.. 168.6 and 170bpa, both above the last USDA estimate of 168.4 bpa. Look for choppy trade ahead of today’s progress report.

Soybeans futures traded slightly higher overnight due to continued optimism surrounding trade talks and hopefulness that “phase one” of the trade deal will be completed this month. Decent harvest progress over the weekend is expected bring harvest to 72% complete, compared to 62% complete last week. The market will continue to find strength as we trade optimism from trade war headlines.

Spring wheat traded lower overnight across all three exchanges due to a general lack of fresh news to support the market. Below average temperatures over the next 10 days are expected to cause the winter wheat crop to enter dormancy. Continue to see lower trade as the world supplies continue to increase and demand remains poor.

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$10.31$10.10$9.72
CZ20 Oct20$4.28$4.21$4.03
MW20$6.18$6.15$5.84

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 TargetTriger
0.286.10 MWZ2011/20/20
0.2810.20 SX2010/23/20
0.184.10 CZ2011/23/20

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

Wednesday October 30, 2019 by: Eric Peterson

For now, we are not taking wheat at Drayton and the stations as we need to make room for corn and soybeans. Please call with any questions.

Corn trade was quiet overnight with the December contract trading a narrow three cent range. December futures are trading their comfortable range with the news we have, harvest pressure is picking up and the trade is already looking ahead to the November 8th WASDE to see wheat the balance sheet adjustments will look like. Look for mostly flat trade today as the market remains rangebound.

Soybeans closed a penny higher this morning with the January contract trading a five cent range overnight. Soybeans prices were higher on continued hopes of Chinese business or a final contract signing at the mid November Summit meeting. But weakness came on chatter that a deal may not get done in time for signing at the Summit meeting. Look for lack of Chinese purchases of U.S soybeans to continue to weigh on the market.

Spring wheat traded lower overnight on all three wheat exchanges. Minneapolis wheat is getting near the next technical support level of $5.21 with resistance above at $5.36. Choppy trade is expected as positions get squared away ahead of first notice day and the end of the month. While mills are thought to be pretty well supplied with wheat, there seems to be that somebody that will pick up additional supplies because its relatively cheap.

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)$10.28$10.10$9.72
CZ20 (Oct 20)$4.25$4.22$4.05
MZ20 (Dec)$6.06$6.00$5.77

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
0.286.10 MWZ2011/20/2020
0.2810.20 SX2010/23/2020
0.18$4.10 CZ2011/23/2020

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.

© 2019 CHS Inc.