Morning Market Wire

Tuesday June 30, 2020                                               By: Eric Peterson

Corn traded higher overnight with on month end and quarter end positioning.  Short positions are closing up some of their positions.  Today’s stock report will final give the market some hard data to study.  The average planted acre estimate is 95.21 million acres.  Crop conditions were up 1% from last week at 73% good/excellent with silking behind at 4%.  Look for mixed trade as the market anxiously awaits today’s acreage and stock report.           

Soybeans saw mixed trade overnight ahead of today’s report and end of month positioning.  Overall U.S weather remains favorable as scattered rain events occur across the U.S.  Soybeans saw an improved crop rating on yesterday’s report.  Soybeans were estimated at 71% good/excellent, up 1% from last week.  Today’s report is expected to show acres around 85 million acres up from the intentions report of 83.5 million.  Look for mixed trade today ahead of the report.       

Spring wheat was slightly weaker overnight with the July contract closing below $5.00.  The July contract seems to be following the same trend as the May contract of expiring near contract lows.  Dryness in North Dakota and Canada continues to be a concern for spring wheat.  Look for mostly mixed trade ahead of the report.    

Price Builder BonusDaily Price PlusFutures at 8:00am
SH21 Jan21$8.99$8.75$8.66
CH21 Jan21$3.82$3.63$3.49
MWN21 June21$5.81$5.74$5.58

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 June 29, 2020                                               By: Eric Peterson

We will be closing at noon on Thursday July 2nd and will be CLOSED Friday July 3rd

Corn traded higher overnight with the July contract closing just off the overnight high of $3.21.  Tomorrow, the USDA will release the much anticipated planting and quarterly stocks report.  The average trade estimated for tomorrows report is 95.21 million acres this compares to an estimate of 96.99 on the March 31 report.  Look for slightly higher trade today on positioning ahead of tomorrow’s report.       

Soybeans saw mixed trade overnight ahead of tomorrow’s report and end of month positioning.  Overall U.S weather remains favorable as scattered rain events occur across the U.S.  An improved crop rating is expected on today’s crop condition report.  Tomorrow’s report is expected to show acres around 85 million acres up from the intentions report of 83.5 million.  Look for mixed trade today.      

Spring wheat was slightly weaker overnight with the July contract closing below $5.00.  The July contract seems to be following the same trend as the May contract of expiring near contract lows.  Dryness in North Dakota and Canada continues to be a concern for spring wheat.  Look for mostly mixed trade ahead of tomorrow’s 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
SH21 Jan21$8.99$8.75$8.60
CH21 Jan21$3.82$3.63$3.40
MWN21 June21$5.81$5.74$5.58

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
0.085.80 MWH212/20/21
0.109.40 SH212/20/21
.153.60 CH212/20/21

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 June 24, 2020                                               By: Eric Peterson

Corn closed a fraction higher this morning with the July contract trading a three cent range overnight.  Technically, support for July corn is below at the 50 day moving average of $3.23.  The focus will now turn to the planted acre report due out June 30th.  Acres are likely to be around 94 million compared to 97 million intentions on the last report.  Look for mostly flat trade today as weather forecasts are generally viewed as non-threatening.     

Soybeans saw two sided trade overnight with the July contract trading a five cent range.  Favorable weather across the U.S continue to pressure the market.  Prices are drawing additional pressure form uncertainty over the continuation of Chinese buying of U.S goods.  Look for steady to higher trade as traders continue to be checking daily export sales announcements for signs of continued demand.    

Spring wheat was weaker overnight on China headlines and some harvest pressure.  Winter wheat harvest is 29% complete with Kansas at 25% and Oklahoma at 85% complete.  Winter wheat conditions saw a 2% increase while spring wheat saw a 6% decline but still very good ratings at 75% good/excellent.  Look for slightly lower trade today as the decline in spring wheat ratings could provide underlying support.          

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 June 23, 2020                                               By: Eric Peterson

Corn traded lower overnight on an improving crop rating.  July corn traded a wide six cent range overnight.  Scattered field reports suggest that the crop is doing fine for now but will need some timely rains for the balance of June and through the critical pollination period.  Yesterday’s crop report showed an improvement of 1% to 72% good/excellent.  Look for mixed trade today as the market attempts to bounce off three week lows.   

Soybeans traded two sided overnight.  The initial price drop acme after the White House Advisor Peter Navarro was reported as saying the trade deal with China is over.  However, late in the evening, President Trump sent out a tweet stating the China deal is fully in intact.  Yesterday’s crop report showed a 2% decline in the good/excellent category.  Look for slightly lower trade as traders sort out the impact of all the trade talk. 

Spring wheat was weaker overnight on China headlines and some harvest pressure.  Winter wheat harvest is 29$ complete with Kansas at 25% and Oklahoma at 85% complete.  Winter wheat conditions saw a 2% increase while spring wheat saw a 6% decline but still very good ratings at 75% good/excellent.  Look for slightly lower trade today as the decline in spring wheat ratings could provide underlying support.          

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
SH21 Jan21$9.15$8.80$8.76
CH21 Jan21$3.82$3.73$3.50
MWN21 June21$5.95$5.80$5.67

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
0.136.00 MWH212/20/21
0.129.40 SX2010/23/20
0.153.60 CH212/20/21

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 June 19, 2020                                               By: Eric Peterson

Corn traded slightly higher overnight as the July contract looks to set another week of higher lows as it has been able to do the last 7 weeks.  The majority of the corn belt is forecasted to get rains in the next week or two.  However, Illinois and Indianan are expected to run below the average amounts.  Look for higher trade today as the market looks to stay rangebound to finish the week.        

Soybeans traded higher overnight with the July contract hitting highs not seen since the beginning of April.  The market is higher following the strength from soybean oil.  Rumors of China state owned companies planning to increase U.S soybean purchases is providing additional support.  Look for mostly higher trade today.         

Spring wheat closed two cents lower this morning trading a narrow range overnight.  Kansas City wheat is on pace for the largest loss in five weeks and trades at its lowest level since mid-March.  Minneapolis trades at a premium to winter wheat as protein reports from harvest are still low, but yield reports are strong.  Look for mostly mixed trade today.        

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 June 18, 2020                                               By: Eric Peterson

Corn saw more sideways trade overnight as futures struggle to break out of the topside of the range.  The market found light support overnight on warmer temps and some short covering.  Large spec and managed money accounts are holding large net short positions with managed money an estimated net short about 291k contracts.  Look for choppy trade to continue into today.      

Soybeans traded higher overnight following a stronger soy meal market.  November soybeans traded both sides of the 100 day moving average of $8.76.  Overhead resistance is likely around $9.00.  Yesterday there were rumors that China bought 4-5 cargoes of soybeans for Nov/December deliver.  Look for strength today on hopes that China will keep buying from the U.S.       

Spring wheat traded higher overnight, with the July contract 15 cents off yesterday’s low.  Spring wheat continues to find support as the higher protein is being sought after due to poor protein winter wheat being harvested right now.  Support is also coming from rumors that China made purchases of U.S wheat.  Look for mostly higher trade as July Minneapolis wheat will test the $5.30 level.      

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 June 17, 2020                                               By: Eric Peterson

Corn traded a narrow range overnight with the July contract trading a two cent range.  Funds remain short an estimated 300,000 contracts which leaves many optimistic for a short covering rally.  The U.S crop continues to develop although many areas have experienced hot and dry weather.  The 5-7 day forecast shows rains for the western corn belt.  Look for weaker trade today as corn struggles to break resistance and stays rangebound.    

Soybeans traded two sided overnight with the July contract trading a four cent range.  PNW and Gulf values improve as the recent sales to China and unknown destinations have export facilities bidding up for bushels.  The U.S fall export program is expected to be as large as Brazil.  Brazil is expected to run short on supplies and not compete until their next harvest.  Look for slightly weaker trade today until Chinese sales become more consistent.     

Spring wheat closed a penny higher this morning after trading a narrow range overnight.  Kansas City markets continued to be pressured by harvest and better than expected yields.  Protein results in the winter wheat are lower than expected, giving spring wheat markets a little strength as miller consider blending higher protein spring wheat in.  Look for slightly weaker trade today.    

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 June 16, 2020                                               By: Eric Peterson

Corn traded higher overnight as corn ratings declined unexpectedly to 71% good/excellent compared to 75% last week.  Now some areas continue to experience high winds, hot temps and some dryness.  However, some areas are forecasted for rain this week.  Fund position remains quite short which leaves the market open to a short covering rally.   Look for higher trade as the market stays rangebound. 

Soybeans bounced higher overnight following outside markets higher.  The fact that we are seeing more sales to China is also providing support.  Planting progress came in at 93% compared to 88% average.  The good/excellent rating came in at 72% which is unchanged from last week.  Look for higher trade today as futures look poised to test recent highs as demand picks up.   

Spring wheat was mixed overnight as Minneapolis wheat is seeing some strength and KC/Chicago are seeing weakness.  Spring wheat ratings came in at 81% good/excellent compared to 77% a year ago which saw a record high spring wheat yield.  U.S winter wheat harvest continues to go strong as traders are still trying to assess the damage caused by drought and cold temps. 

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 June 15, 2020                                               By: Eric Peterson

Corn was weaker overnight as the market saw narrow ranges as futures were pulled lower by outside markets.  Farmer selling across the country remains slow as December futures are at their lowest position for this time of year since 2006.  The U.S faced warm/hot temps this week, which could stress some acres.  Look for quiet to weaker trade today as corn struggles to find traction of its own due to weaker macro markets.

Soybeans traded weaker overnight with the July contract trading a wide six cent range.  Friday’s sale to China kept steady with current trend of sales from the country.  However, more is needed for both sides to meet Phase 1 commitments.  Soybean planting is expected to come today around 95% complete, compared to 86% last week and a five year average of 89%.  Look for weaker trade today as more sales to China are needed to jump start the market.      

Spring wheat was able to close a fraction higher this morning after finding support late in the session.  Talk of another round of covid after both the U.S and China are reporting more cases is making the market nervous.  Harvest in the southern plains continues to progress with reports pointing towards above average yields and test weight, but protein looks to be on the lower end.  Look for mixed to higher trade today. 

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 June 10, 2020                                               By: Eric Peterson

Corn was weaker overnight as the fundamental outlook remains bearish as we head into summer.  July corn is currently just above the 50 day moving average of $3.24, with the contract low below at $3.24.  Overall weather conditions remain favorable.  Look for slightly lower trade ahead of tomorrows USDA report. 

Soybeans saw a small bounce overnight with the July contract closing four cent higher.  Support came on news yesterday that China will continue to buy a few U.S soybean cargoes.  However, China is still buying from Brazil and Argentina, but the South America program should be slowing down and demand should be going back to the U.S.  Look for slightly higher trade today.    

Spring wheat closed a fraction higher this morning as the choppy trade continues.  U.S winter wheat harvest is in full swing and seems to be a few weeks earlier than normal, brought on by dryness and warmer temps.  Look for slightly higher trade today on a lower U.S dollar and some production problems around the world.         

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
SH21 Jan21$9.30$8.95$8.79
CH21 Jan21$3.80$3.73$3.53
MWN21 June21$6.22$5.80$5.76

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.

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