CHS Drayton Morning Market Wire (11/28)

Corn closed two cents higher overnight with the March contract closing at the overnight high of $3.58.  Short term resistance for March corn is at $3.73 with support at $3.65. The last crop progress report showed corn at 94% harvested, lagging behind the five year average of 96%. Look for mixed to slightly higher trade as news remains light and uneventful.        

Soybeans traded higher overnight with the January contract closing five cents higher this morning.  The market found support on optimism of this week’s G20 summit where President Trump will meet with Chinese leaders to discuss a deal.  South America experiences mostly good growing conditions, as Brazil production figures are expected to climb to record levels.  Look for slightly higher trade today.

Spring wheat saw a slight bounce overnight, which is no surprise after Kansas City wheat has seen consecutive days at new contract lows.  All wheat export inspection are running 19% behind last year at this time.  SovEcon upped their Russian wheat export forecast to 34.7 million tons, 500k higher than their previous estimate.  Look for mostly quiet trade as Minneapolis wheat seems rangebound for now.

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) $9.87 $9.62 $9.31
CZ19 (Dec) $4.17 $4.04 $3.93
MWZ19 (Dec) $6.31 $6.18 $6.05

 

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
0.24 10.00 SX19 10/23/2019
0.15 4.00 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEH19 5.71 +0.01
Kansas City HRW: KWEH19 4.87 +0.04
Soybeans: SF19 8.80 +0.05
Corn: CH19 3.70 +0.02

 

CHS Drayton Cash Prices
Spring Wheat: 5.31 -0.40 basis Nov Delivered Drayton
Winter Wheat: 4.07 -0.80 basis Nov Delivered Drayton
Corn: 3.10 -0.60 basis Nov Delivered Drayton
Soybeans: 7.40 -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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