CHS Drayton Morning Market Wire (12/3)

Corn traded higher overnight with the March contract closing four cents higher, four cents off the overnight high of $3.85. Last night’s high is a new three week high. Support came overnight after U.S and China agreed to a 90 day truce in their current trade war. Look for mostly higher trade today on strength in soybeans and friendly trade news.

Soybeans traded higher overnight but closed well off the overnight highs as the market got excited about the progress on China/U.S trade. The January contract gapped higher over $9.00 for the first time since August. November 2019 futures presents a selling opportunity at $9.50. The U.S agreed not to implement an additional 15% tariffs on an additional $267 billion, while China agreed to “buy agricultural products from the U.S.” However, China has not stated if they will reduce tariffs on U.S grains.

Spring wheat traded higher overnight on strength in the corn and soybean markets. March Minneapolis wheat closed four cents higher, two cents off the session high. Russian wheat exports climbed 20.4mmt so far this year, that’s up 19% year on year according to Russia’s Ag ministry. They are maintaining they’ll reach 34mmt this year. Look for mostly higher trade on the Trump bump.

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) $10.08 $9.82 $9.53
CZ19 (Dec) $4.26 $4.15 $4.02
MWZ19 (Dec) $6.39 $6.31 $6.11

 

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
0.26 10.20 SX19 10/23/2019
0.15 4.10 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEH19 5.80 +0.04
Kansas City HRW: KWEH19 5.04 +0.04
Soybeans: SF19 9.11 +0.16
Corn: CH19 3.81 +0.04

 

CHS Drayton Cash Prices
Spring Wheat: 5.40 -0.40 basis Dec Delivered Drayton
Winter Wheat: 4.24 -0.80 basis Dec Delivered Drayton
Corn: 3.25 -0.56 basis Dec Delivered Drayton
Soybeans: 7.76 -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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