CHS Drayton Morning Market Wire (12/10)

We will NOT be taking wheat or corn on MONDAY December 10th.

-Wednesday, December 12th we will not be dumping grain after 12:00pm. We will be shut down for maintenance.

CHS Drayton Annual Meeting will be held December 12th at 12:30pm at Hastings Landing, beginning with lunch and meeting to follow.  Please RSVP by calling the office.   

Market Summary

Corn trade was weaker overnight with the March contract trading a narrow two cent range. The USDA December Supply and Demand report will be released tomorrow at 11:00am. The average carryout estimate is 1.738 billion bushels, about equal to last month. Prices have traded sideways since gapping higher on December 3rd. Traders will be watching that gap as markets trades higher.

Soybeans traded lower overnight with the January contract closing two cents off the session low. Technical resistance is at last week’s high of $9.23 with support at last Monday’s gap from $8.96 to $8.97. Markets want to see something happen with China. Rumors continue to circulate that China will soon buy 5-8mmt of U.S soybeans for their state reserves. Look for mostly lower trade as the market awaits concrete news in the trade war with China.

Spring wheat traded lower overnight with the March contract at the overnight low of $5.77. Wheat exports in Friday’s report were the 2nd largest for the marketing year, with Egypt and Mexico almost tied for largest buyer. The January 12th USDA planting report is expected to show winter wheat acres the smallest in many years, but the crop should be off to a good start with ample moisture. Look for slightly lower trade on a lack of bullish news.

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) $10.09 $9.82 $9.58
CZ19 (Dec) $4.25 $4.13 $4.02
MWZ19 (Dec) $6.19 $6.14 $6.08

 

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
0.15 6.40 MWZ19 11/20/2019
0.30 10.00 SX19 10/23/2019
0.15 4.10 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEH19 5.77 -0.04
Kansas City HRW: KWEH19 5.08 -0.03
Soybeans: SF19 9.12 -0.04
Corn: CH19 3.84 -0.01

 

CHS Drayton Cash Prices
Spring Wheat: 5.32 -0.45 basis Dec Delivered Drayton
Winter Wheat: 4.28 -0.80 basis Dec Delivered Drayton
Corn: 3.28 -0.56 basis Dec Delivered Drayton
Soybeans: 7.77 -1.35 basis Dec 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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