CHS Drayton: Morning Market Wire (11/06)

Corn closed a fraction lower this morning ahead of Thursday’s USDA Supply and Demand report.  The USDA is expected to slightly trim U.S corn yield and carryout.  The USDA pegged corn harvest at 76% complete, still behind the five year average of 77% complete.  The U.S will battle a wet weather again this week, next week appears to be cold and mostly dry.  Look for choppy to lower trade today as harvest begins to wrap up.

Soybeans saw mixed trade overnight as harvest continues to lag.  The crop progress report showed soybean harvest at 83% complete compared to the five year average of 89% complete at this point last year.  We have yet to see any real progress in the U.S/China trade war.  Look for mostly weaker trade today as we continue to deal with the last parts of harvest.

Spring wheat traded two sided overnight with the December contract closing unchanged this morning.  The wheat markets gained support overnight from a friendly crop progress report.  The USDA crop progress report showed winter wheat planting at 84% complete compared to the 5 year average of 90% complete.  The USDA also reported winter wheat conditions at 51% good/excellent, down from last week’s 53%.  Look for choppy trade today as we struggle with slow planting, but slower export demand.

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
SX19 (Nov) $9.95 $9.60 $9.32
CZ19 (Dec) $4.25 $4.15 $4.03
MWZ19 (Dec) $6.46 $6.30 $6.22

 

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
0.17 6.40 MWZ19 11/20/2019
0.30 9.60 SX19 10/23/2019
0.17 4.05 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEZ18 5.81 0.00
Kansas City HRW: KWEZ18 5.05 +0.01
Soybeans: SF19 8.84 -0.01
Corn: CZ18 3.73 -0.01

 

CHS Drayton Cash Prices
Spring Wheat: 5.31 -0.50 basis Nov Delivered Drayton
Winter Wheat: 4.25 -0.80 basis Nov Delivered Drayton
Corn: 3.06 -0.67 basis Nov Delivered Drayton
Soybeans: 7.29 -1.55 basis Nov 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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