CHS Drayton Morning Market Wire (11/26)

Market Summary

Corn closed a fraction lower this morning, with the December contract trading a narrow two cent range. December corn is at its lowest level since October 1st. The contract low is below at $3.42 and how the December contract expires could be very important. Look for mostly lower trade today as the market continues to erode lower        

Soybean trade was weaker overnight with the January contract closing two cents off the overnight low $8.71. Technically, the January contract slipped below the 10 day moving average of %8.75. The G20 economic summit meeting in Buenos Aires start up November 30th as many hope to see some positive news on the U.S/China trade talk. Look for mostly lower trade in front of G20 summit later this week.

Spring wheat traded higher overnight on correction after last week’s move lower. Winter wheat as now seen contract lows for four consecutive days. Look for slightly higher traded as tensions in the Black Sea region between Ukraine and Russia have supported U.S wheat values overnight, as shipping rates on Black Sea wheat may escalate.

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) $9.79 $9.53 $9.22
CZ19 (Dec) $4.18 $4.10 $3.95
MWZ19 (Dec) $6.37 $6.23 $6.07

 

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 6.30 MWZ19 11/20/2019
0.32 9.50 SX19 10/23/2019
0.13 4.05 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEH18 5.75 +0.04
Kansas City HRW: KWEZ18 4.64 +0.03
Soybeans: SF19 8.73 -0.07
Corn: CZ18 3.58 0.00

 

CHS Drayton Cash Prices
Spring Wheat: 5.35 -0.40 basis Nov Delivered Drayton
Winter Wheat: 3.84 -0.80 basis Nov Delivered Drayton
Corn: 3.03 -0.55 basis Nov Delivered Drayton
Soybeans: 7.33 -1.40 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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