CHS Drayton: Morning Market Wire (10/30)

Corn prices continue to fall as improved weather conditions push harvest along.  December corn has closed lower seven out of the last ten trading sessions, losing 8 ½ cents since October 16th. Yesterday’s crop progress report showed harvest at 63% complete, up 14% from last week but in line with the five year average.  Look for lower trade today on continued harvest activity.

Soybeans closed a penny higher this morning with the November contract trading a relatively narrow seven cent range.  The crop progress report pegged harvest at 72% complete, up 19% from last week but still behind the five year average of 81%.  Weather conditions should allow for increased harvest activity this week. Look for mixed trade today as the market will be watching Brazil’s president elect for signs of any trade changes with China.

Spring wheat closed a fraction higher this morning after light, mixed trade overnight.  The USDA showed winter wheat planting at 78% complete with rating of 53% good/excellent.  World demand for wheat remains relatively poor with many hoping that Russia will eventually slow exports. Look for slightly higher trade today as the U.S winter wheat planting pace remains slow.

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) $9.05 $8.95 $8.81
CK19 (May) $4.00 $3.95 $3.87
MWK19 (May) $6.11 $6.05 $5.94

 

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
0.18 6.40 MWZ19 11/20/2019
0.25 9.55 SX19 10/23/2019
0.12 4.10 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEZ18 5.77 0.00
Kansas City HRW: KWEZ18 5.01 -0.01
Soybeans: SX18 8.40 +0.01
Corn: CZ18 3.66 0.00

 

CHS Drayton Cash Prices
Spring Wheat: 5.27 -0.50 basis Oct Delivered Drayton
Winter Wheat: 4.21 -0.80 basis Oct Delivered Drayton
Corn: 2.99 -0.67 basis Oct Delivered Drayton
Soybeans: 6.80 -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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