CHS Drayton: Morning Market Wire (10/22)

Corn traded slightly higher overnight on light technical trading.  The December contract has seemed to find support at the 50 day moving average of $3.65.  Funds have moved from net short 112k on Sept 25th to a net long of 20k on Oct. 16th.  It was a clear weekend for harvest, and the 7 day forecasts is mostly dry as well, with only short delays expected in Iowa and N Illinois.  Today’s progress report is expected to show corn harvest at 50% complete.

Soybeans saw light two sided trade overnight despite a relatively heavy harvest weekend in the western corn belt.  The November contract has found support at the 50 day moving average of $8.55.  Brazil is now reported at 34% planted, ahead of the five year average of 18%.  Look for mostly lower trade today as trade news remains mostly quiet and soybean exports fall farther behind.

Spring wheat closed a fraction lower this morning led by weakness in Kansas City and Chicago markets.  With drier weather, Alberta reports spring wheat harvest at 60% complete.  Russian wheat exports totaled 4.46mmt in September, above estimates of 4.0mmt.  Look for mixed to lower trade today as the market awaits buyers to show up, or at least a headline about Russian export restrictions.

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
SK19 (May) $9.46 $9.15 $8.98
CK19 (May) $4.04 $3.95 $3.87
MWK19 (May) $6.30 $6.15 $6.08

 

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
0.22 6.45 MWZ19 11/20/2019
0.26 9.70 SX19 10/23/2019
0.13 4.10 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEZ18 5.88 0.00
Kansas City HRW: KWEZ18 5.12 -0.03
Soybeans: SX18 8.58 +0.01
Corn: CZ18 3.68 +0.01

 

CHS Drayton Cash Prices
Spring Wheat: 5.22 -0.63 basis Oct Delivered Drayton
Winter Wheat: 4.34 -0.80 basis Oct Delivered Drayton
Corn: 3.03 -0.67 basis Oct Delivered Drayton
Soybeans: 7.04 -1.60 basis Oct Delivered Drayton

 

Spring Wheat Protein Scales

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

-.03 cents ea. 1/5 down from 13.0% to 12.0% (Max -0.40)

+.02 cents ea. 1/5 from 14.0% to 15.0%

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