CHS Drayton Morning Market Wire (11/30)

Corn traded higher overnight with the March contract trading a narrow two cent range. December corn remained above $3.60, but still trails the 50 day moving average of $3.66. The market remains flat ahead of the G-20 Summit. The G-20 Summit begins today with President Trump expected to meet with the Chinese tomorrow. Look for mostly quiet trade today as the market positions itself in front of the weekend.

Soybeans traded higher overnight ahead of today’s G-20 Summit held in Argentina. Part of the headlines yesterday included one saying U.S and China are exploring a possible trade deal that would suspend further tariffs. Look for mostly higher trade today on continually improving outlooks for the G-20 summit.

Spring wheat closed a penny higher this morning as the low volume, uneventful trade continues. The wheat market continues to be stuck in range bound trade as we wait for a major headline to hit the market. Look for mostly quiet trade ahead of the meetings this weekend.

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) $9.94 $9.64 $9.38
CZ19 (Dec) $4.19 $4.06 $3.96
MWZ19 (Dec) $6.29 $6.21 $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
0.28 10.00 SX19 10/23/2019
0.17 4.00 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEH19 5.69 +0.01
Kansas City HRW: KWEH19 4.94 +0.02
Soybeans: SF19 8.92 +0.05
Corn: CH19 3.74 +0.01

 

CHS Drayton Cash Prices
Spring Wheat: 5.29 -0.40 basis Nov Delivered Drayton
Winter Wheat: 4.14 -0.80 basis Nov Delivered Drayton
Corn: 3.18 -0.56 basis Nov Delivered Drayton
Soybeans: 7.57 -1.35 basis Nov Delivered Drayton

 

Spring Wheat Protein Scales

-.02 cents ea. 1/5 down from 14.0% to 13.0%

-.02 cents ea. 1/5 down from 13.0% to 12.0% (Max -0.20)

+.02 cents ea. 1/5 from 14.0% to 15.0%

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