CHS Drayton: Morning Market Wire (10/23)

Corn closed unchanged this morning after trading a narrow two cent range overnight.  The December contract is staying close to the 100 day moving average of $3.70 with technical support at $3.65.  Yesterday’s crop progress report showed corn conditions unchanged from last week at 68% good/excellent.  Progress was reported at 49% complete, slightly behind the estimate of 51%.  Look for slightly higher trade today as overall demand remains strong.

Soybeans closed down four cents this morning, trading lower the entire overnight session.  Pressure came overnight as U.S harvest has seen major progress made over the last week.  The USDA pegged harvest at 53% complete, ahead of estimates but well behind the five year average of 69%.  Look for mostly lower trade today as slow exports remain the focus until we get a better idea of crop quality.

Spring wheat traded higher overnight with the December contract trading a narrow two cent range.  The market continues to bounce around its recent trading range.  Since October 3rd the December contract has traded a tight 18 cent range.  For the most part, news remains routine as the bulls wait for Russia to limit exports.  Look for slightly lower trade today as weather conditions look favorable for winter wheat planting this week.

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) $9.41 $9.10 $8.95
CK19 (May) $4.04 $3.95 $3.89
MWK19 (May) $6.21 $6.10 $6.02

 

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 6.40 MWZ19 11/20/2019
0.25 9.65 SX19 10/23/2019
0.14 4.10 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEZ18 5.86 0.00
Kansas City HRW: KWEZ18 5.04 -0.03
Soybeans: SX18 8.54 -0.04
Corn: CZ18 3.69 0.00

 

CHS Drayton Cash Prices
Spring Wheat: 5.23 -0.63 basis Oct Delivered Drayton
Winter Wheat: 4.24 -0.80 basis Oct Delivered Drayton
Corn: 3.02 -0.67 basis Oct Delivered Drayton
Soybeans: 6.94 -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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