CHS Drayton: Morning Market Wire (11/8)

Corn closed slightly higher this morning on positioning ahead of today’s USDA Supply and Demand report at 11:00am. The market was stronger on thoughts of a lower yield in today’s report. The average estimate for the U.S corn yield in today’s report is 180bpa, down from October’s USDA estimate of 180.7bpa. Analysts are also estimated a reduction in U.S carryout. Look for choppy trade today on position squaring ahead of the report.

Soybeans traded higher overnight with the November contract closing at the overnight high. Support came overnight as many are expecting a reduction to yield on today’s report. The average estimate for the U.S soybean yield in today’s report is 52.9bpa, down from October’s USDA number of 53.1bpa. Chinese soybean imports for October were reported at 6.92mmt, down from last year’s 8.01mmt for the same time frame. Look for mostly lower trade off the open ahead of the report.

Spring wheat rebounded overnight nearly erasing yesterday’s losses. All three exchanges were higher overnight with support from technical buying and export sales. Export sales for wheat came in at 661,200 tons compared to the estimate range of 300k-600k tons. Analysts are estimating U.S wheat carryout to increase only 2 million bushels to 958 million bushels. Look for higher trade off the open after a decent export report.

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) $9.93 $9.64 $9.32
CZ19 (Dec) $4.28 $4.12 $4.04
MWZ19 (Dec) $6.45 $6.30 $6.18

 

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
0.29 9.80 SX19 10/23/2019
0.17 4.05 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEZ18 5.85 +0.04
Kansas City HRW: KWEZ18 5.04 +0.01
Soybeans: SF19 8.82 +0.02
Corn: CZ18 3.73 +0.01

 

CHS Drayton Cash Prices
Spring Wheat: 5.35 -0.50 basis Nov Delivered Drayton
Winter Wheat: 4.24 -0.80 basis Nov Delivered Drayton
Corn: 3.06 -0.67 basis Nov Delivered Drayton
Soybeans: 7.27 -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%

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