CHS Drayton Morning Market Wire (12/4)

Corn closed a fraction lower this morning and traded lower the entire overnight session. The market is weaker in response to the uncertainty of the trade truce. Expert crop scout, Dr. Cordonieer has left his Brazil production estimate unchanged at 96mmt, with a neutral to higher bias. Overall demand for U.S corn remains strong both domestic and global. Look for slightly lower trade today on profit taking.   

Soybeans traded two sided overnight with the January contract trading a four cent range. January soybeans attempted to fill the gap left Sunday night from $8.96 to $9.04. China remains silent regarding the trade truce with the U.S in Argentina. They have not agreed to buy large amounts of agricultural products nor have they agreed to lower tariffs on soybeans or cars. Look for mostly lower trade on confusion over the U.S/China trade truce.

Spring wheat traded lower overnight retracing some of the recent gains on a lack of fresh positive news. StatsCan will be released on December 6th with production of all wheat estimated at 31.4mmt above last years of 29.9mmt. Look for mostly lower trade today on profit taking and uncertainty over the U.S/China trade truce.

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) $10.01 $9.70 $9.53
CZ19 (Dec) $4.25 $4.12 $4.01
MWZ19 (Dec) $6.35 $6.23 $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
0.23 10.20 SX19 10/23/2019
0.16 4.10 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEH19 5.80 -0.02
Kansas City HRW: KWEH19 5.01 -0.04
Soybeans: SF19 9.09 +0.03
Corn: CH19 3.81 0.00

 

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: 7.74 -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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