Morning Market Wire

Tuesday April 7, 2020                                               By: Eric Peterson

Corn found strength overnight with the May contract closing at the session high of $3.32.  The market was higher overnight on ideas that corn is oversold.  May corn has closed lower the past 7 sessions.  The next WASDE report is scheduled for Thursday with a wide range of estimated ending stocks from 1.79 billion bushels to 2.150 billion bushels.  Look for choppy trade today as corn will likely struggle to keep overnight gains. 

Soybeans closed four cents higher this morning, following the strength in the soymeal market.  AgRural lowered their Brazilian soybean estimate from 124.3 to 123.8 million tonnes.  Harvest is roughly 85% complete.  Estimates for the upcoming WASDE report are out.  Soybean ending stocks have a range of 385 and 475 million bushels.  Look for slightly higher trade today as South America production estimates continue to be lowered. 

Spring wheat was weaker overnight with the May contract closing three cents lower.  An improvement on yesterday’s condition report pressured the market.  The good/excellent rating on winter wheat was 62%.  The last rating in the fall was 52%, so a solid improvement.  The average decline from fall to spring is 5%, so to see an improvement was a surprise.  Look for continued choppy 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
SX20 Oct20$9.18$8.90$8.70
CZ20 Oct20$3.79$3.68$3.52
MWZ20 Jan21$5.95$5.90$5.68

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
0.156.00 MWZ2011/20/2020
0.129.60 SX2010/23/2020
0.103.80 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 4/03 and every Friday until further notice***

Corn closed three cents higher this morning with the May contract closing at $3.37. December corn continues to stay right around $3.50, just above the contract low of $3.46.  Large managed money funds are estimated short 133k, which leaves the market open for a short covering rally.  Look for limited gains today as corn continues to follow the crude market.      

Soybeans traded higher overnight with the May contract closing three cents higher.  The market saw a pop yesterday on news that Saudi Arabia and Russia had come to terms on production cutbacks going forward. The Buenos Aires Grain Exchange cut its Argentine soy crop forecast to 49.5 mil tons from its earlier 52 mil tons.  Port logistics remain an issue in Argentina.  Look for slightly higher trade today.    

Spring wheat bounced higher overnight with the May contract closing at the overnight of $5.26.  The market remains choppy although the overall fundamental situation appears friendly.  Kansas saw abnormally low temperatures overnight, which could be providing additional support to the market.  Look for slightly 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.)

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 4/03 and every Friday until further notice***

Corn traded lower overnight as the December contact hits its contract low from yesterday, but the May contract is able to stay above its contract low.  Corn could possible oversold in the short term but overall the fundamental situation looks bearish. Ethanol production/demand and gasoline demand just the first week of major reduction with more likely to follow.  Look for slightly higher trade today as we may bounce off recent lows. 

Soybeans continued to trade lower overnight after yesterday’s sell off.  The market is now 5% lower for the week.  Pressure is coming as the Brazilian Real has made new lows against the U.S dollar.  It looks that the U.S may be gaining some acres back although weather will be a major determining factor.  Look for mostly lower trade as it looks traders are liquidating their long positions.  

Spring wheat traded lower overnight after selling off yesterday.  For the past couple of weeks wheat has rallied and may have priced itself out of the world market.  Weakness is also stemming from heightened fears of the spread of the Coronavirus and its affect on the economy.  Look for continued 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
CZ20 Oct20$3.78$3.65$3.48
SX20 Oct20$9.01$8.90$8.61
MH21 Jan21$5.94$5.85$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 TargetTrigger Date
0.155.90 MWZ2011/20/20
0.129.60 SX2010/23/20
0.103.80 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 4/1

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

Corn traded lower overnight after yesterday’s bearish USDA report.  The USDA reported planted acres estimated at 97.0 million acres compared to the average trade estimate of 94.3 million, an 8% increase from last year.  The USDA put March 1 corn stocks at 7.953 billion bushels.  The trade average estimate was 8.125 billion.  Keep in mind that the surveys for the report were done the first of March before the energy market collapse.      

Soybeans saw double digit losses overnight as many believe the corn acres are incorrect and we will see an increase in soybean acres.  The USDA pegged the 2020 U.S acres below what the trade was expecting but pegged the March 1 stocks well above the trade expectations.  Soybean acres were estimated at 83.510 million acres, well below what the trade was expecting.  Look for mostly lower trade today. 

Spring wheat closed three cents lower this morning with the May contract trading a four cent range overnight.   The market was lower on spillover weakness from the corn and soybean markets.  U.S wheat acres are the lowest in nearly 100 years, but that seems to be old news.  The fundamental situation seems to be friendly with demand picking up but that is getting to old news as well.  We may need some fresh news to make the next move higher. 

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 8:00am
SX20 Oct20$9.06$8.90$8.72
CZ20 Oct20$3.77$3.65$3.58
MWH20 Jan21$6.07$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 3/31

***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.

© 2020 CHS Inc.

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