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|
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|
|Futures markets as of 8:30 AM|
|Kansas City HRW:||KWEH19||5.04||+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%
Any information, materials and opinions (together, “CHS Materials”) presented by CHS to the recipient of such CHS Materials, whether in written or oral form, is for general information purposes only and does not constitute legal or other professional advice and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. CHS makes no warranties, representations or undertakings, whether express or implied, about any CHS Materials (including, without limitation, any as to the quality, accuracy, completeness or fitness for any particular purpose of any CHS Materials). Recipient agrees that CHS shall not be liable to recipient relating to or resulting from the use of any CHS Materials or any inaccuracies or errors therein or omissions therefrom.