CHS Drayton Morning Market Wire (12/5)

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.

Corn traded slightly weaker overnight without any visible progress with the U.S/China trade war. Technically, there is gap in March corn below from $3.78 to $3.80 and the fifty day moving average is at $3.79. Dec 2019 corn is currently above $4.00. Look for slightly lower trade as yesterday’s rumors of China buying large tonnage of corn have not been verified.

Soybeans closed higher this morning after trading lower the majority of the overnight session. U.S/China trade relation remain front and center without any real solid progress made. China has stated what they agreed to at the G20 Summit. They said they will “expand imports according to the needs of its domestic market and people.” Look for slightly lower trade as we get some clarity on what China actually agreed to.

Spring wheat traded lower overnight as the market continues to struggle with large supplies and mediocre demand. March Minneapolis wheat filled the gap from Sunday night and the low end of the trading range sits below at $5.68, less than a dime away. Look for slightly lower trade as world demand remains light and Russia/Black Sea region remains to receive the majority of the business.

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) $10.10 $9.84 $9.56
CZ19 (Dec) $4.26 $4.11 $4.01
MWZ19 (Dec) $6.25 $6.21 $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
0.18 6.40 MWZ19 11/20/2019
0.24 10.20 SX19 10/23/2019
0.16 4.10 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEH19 5.77 -0.02
Kansas City HRW: KWEH19 5.00 -0.05
Soybeans: SF19 9.14 +0.02
Corn: CH19 3.83 -0.01

 

CHS Drayton Cash Prices
Spring Wheat: 5.37 -0.40 basis Dec Delivered Drayton
Winter Wheat: 4.20 -0.80 basis Dec Delivered Drayton
Corn: 3.27 -0.56 basis Dec Delivered Drayton
Soybeans: 7.79 -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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