CHS Drayton Morning Market Wire (12/12)

-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 closed a fraction lower this morning with the March contract trading a narrow two cent range. Corn open interest was up 12k yesterday with new buyers entering the market on hopes that a China trade resolution is in the near future. The USDA made subtle changes to the corn balance sheet yesterday. Production and yield stayed constant at 14.626 billion bushels and 178.9bpa. U.S. carryout rose to 1.781 billion bushels, up 45 million from last month.

Soybeans traded higher overnight with the January contract testing the recent high of $9.23. Strength came overnight on hopes that U.S soybeans will find their way back to China. U.S soybean production and yield remained unchanged at 4.6 billion bushels and 52.1bpa. The U.S carryout also was unchanged at 955 million bushels. Look for higher trade after President Trump said China is back in the market to buy soybeans. Trade will be watching for a sales announcement.

Spring wheat closed two cents higher this morning as the market attempts to gain back what It lost yesterday. On yesterday’s USDA report U.S wheat exports fell 25 million bushels to 1.0 billion bushels. This increased the U.S carryout to 974 million bushels. Look for slightly higher trade today.

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) $10.15 $9.82 $9.64
CZ19 (Dec) $4.28 $4.13 $4.04
MWZ19 (Dec) $6.20 $6.14 $6.07

 

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
0.33 10.00 SX19 10/23/2019
0.17 4.10 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEH19 5.77 +0.02
Kansas City HRW: KWEH19 5.08 +0.03
Soybeans: SF19 9.20 +0.05
Corn: CH19 3.85 +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: 3.29 -0.56 basis Dec Delivered Drayton
Soybeans: 7.85 -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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