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|
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|
|Futures markets as of 8:30 AM|
|Kansas City HRW:||KWEZ18||5.05||+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%
Any information, materials and opinions (together, “CHS Materials”) presented by CHS to the recipient of such CHS Materials, whether in written or oral form, is for general information purposes only and does not constitute legal or other professional advice and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. CHS makes no warranties, representations or undertakings, whether express or implied, about any CHS Materials (including, without limitation, any as to the quality, accuracy, completeness or fitness for any particular purpose of any CHS Materials). Recipient agrees that CHS shall not be liable to recipient relating to or resulting from the use of any CHS Materials or any inaccuracies or errors therein or omissions therefrom.