CHS Drayton Morning Market Wire (11/27)

Corn was able to stay above yesterday’s low of $3.55 during the overnight session but is well below any major technical moving averages. Overall news remains light and routine and President Trump indicates he is ready to move forward on increased tariffs on Chinese goods. A trade deal resolution brings hope that China will resume buying U.S DDGs, and sorghum and possibly ethanol.            

Soybeans closed three cents higher this morning, picking up strength overnight after yesterday’s selloff. The G20 economic summit in Buenos Aires starts November 30th. U.S says it is prepared to impose or increase tariffs on all remaining Chinese imports if a deal is not reached. Argentina has replaced China as the biggest buyer of U.S soybeans. We have shipped 1.3mmt of soybeans to Argentina this crop year. Look for slightly higher trade ahead of this week’s G20 summit.

Spring wheat trade was quiet overnight with the March contract trading a narrow three cent range. The Dec/March spread is now at five cent inverse. Kansas City wheat did not hit a new contract low overnight after doing so for four consecutive days. Look for mixed to higher trade as uncertain politics in the Black Sea region are supportive.

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) $9.71 $9.43 $9.18
CZ19 (Dec) $4.14 $4.02 $3.92
MWZ19 (Dec) $6.36 $6.23 $6.06

 

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 6.50 MWZ19 11/20/2019
0.32 9.50 SX19 10/23/2019
0.17 4.05 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEH18 5.72 0.00
Kansas City HRW: KWEZ18 4.63 +0.01
Soybeans: SF19 8.65 +0.03
Corn: CH19 3.68 0.00

 

CHS Drayton Cash Prices
Spring Wheat: 5.32 -0.40 basis Nov Delivered Drayton
Winter Wheat: 3.83 -0.80 basis Nov Delivered Drayton
Corn: 3.08 -0.60 basis Nov Delivered Drayton
Soybeans: 7.25 -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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