CHS Drayton: Morning Market Wire (06/18)

We will be having Marketing Meetings June 25th and June 26th.  NDSU Professor Frayne Olson will be giving a market update on corn, soybeans and wheat. Please call the office for details.

Monday June 25th– Manvel Community Center 9:00am

Monday June 25th– Cavalier Country Club 12:30pm

Tuesday June 26th– Kennedy VFW 10:00am 

-We have several HOPPER BINS FOR SALE, please call the office for details. 

Market Summary

Corn was weaker overnight yet again as good growing weather and trade concerns pressure the market.  The July contract was able to stay above its new contract low from last Friday.  December corn put in a contract high of $4.29 on May 24th and has now set its contract low of $3.79.  Funds continue to trim their length with a reported long of 84,500 contracts down 55,800.  Look for weaker trade off the open due to good growing conditions and trade concerns.

Soybeans traded two sided overnight with the July contract trading a wide twelve cent range.  July soybeans are currently just above $9.00, and front month soybeans have not traded below $9.00 since spring of 2016.  The Commitment of Traders showed funds being aggressive sellers of soybeans, as they sold 48,000 contracts bringing them to a net short of 11,400 contracts.  Look for lower trade on concerns with Chinses tariffs and favorable growing conditions.

Spring wheat traded lower overnight with the July contract trading a three cent range.  Currently, technical support is near $5.63 with resistance at $5.87.  The markets were weaker overnight on continued harvest pressure.  Winter wheat harvest has showed below average yields with decent quality and protein.  Look for lower trade off the open as we add to an already ample wheat supplies.

Compass contracts are a great way to market your new crop by pricing grain daily at a fixed higher futures price.  Below are today’s closing bids for two types of compass contracts we offer.  If you would like to make an offer or would like more information please give me a call at the office.  (All compass contracts have a 48 hour probation period.)

Price Builder Bonus Daily Price Plus Futures at 8:00am
SH19 (Mar.) $10.02 $9.50 $9.41
CH19 (Mar.) $4.25 $4.14 $3.89
MWH19 (Mar.) $6.36 $6.20 $6.09

 

Below is the third compass contract we offer which pays you a premium for your old crop for potentially selling the same amount of new crop.  You only sell the new crop if the futures is equal to or greater than the target price on the trigger date.  There are many different premiums and target prices available. Please call for more info!

Old Crop Premium New Crop Target Trigger Date
0.11 6.10 MWZ18 11/21/2018
0.29 9.50 SX18 10/24/2018
0.12 3.90 CZ18 11/14/2018

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEN18 5.69 -0.01
Kansas City HRW: KWEN18 5.12 -0.07
Soybeans: SN18 9.03 -0.02
Corn: CN18 3.58 -0.03

 

CHS Drayton Cash Prices
Spring Wheat: 5.42 -0.25 basis June Delivered Drayton
Winter Wheat: 4.32 -0.80 basis June Delivered Drayton
Corn: 3.10 -0.48 basis June Delivered Drayton
Soybeans: 8.18 -0.85 basis June Delivered Drayton

 

Spring Wheat Protein Scales

-.09 cents ea. 1/5 down from 14.0% to 13.0%

-.09 cents ea. 1/5 down from 13.0% to 11.5% (Max -1.15)

+.09 cents ea. 1/5 from 14.0% to 15.0%

+.00 cent bump at 15.0%  pro

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