CHS Drayton Morning Market Wire (12/6)

We will NOT be taking wheat or corn on Friday December 7th.

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 lower overnight with the March contract closing at the overnight low of $3.82. The market traded lower on growing confusion over the U.S/China trade truce. The EU expects to import 18.5mmt of corn in the 2018/19 season, that’s up 13% from last year. Look for slightly lower trade today on follow through buying.

Soybeans were under pressure overnight with the January contract closing near overnight lows at $9.04. There is still no concrete news on the trade war, as U.S soybean exports remain nearly non-existent to China, the world’s largest soybean buyer. Brazil’s soybean exports to China in November were up 167%. Look for weaker trade today as the trade truce details remain unclear.

Spring wheat trade was weaker overnight on a lack of fresh bullish news. March Minneapolis gapped further from the fifty day moving average of $5.86. The recent low is below at $5.67, less than a dime away. December 2019 is the first contract that remains above $6.00. Look for mostly lower 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) $10.05 $9.78 $9.49
CZ19 (Dec) $4.24 $4.11 $4.01
MWZ19 (Dec) $6.22 $6.17 $6.01

 

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
0.24 10.20 SX19 10/23/2019
0.20 4.00 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEH19 5.76 -0.02
Kansas City HRW: KWEH19 5.00 -0.05
Soybeans: SF19 9.04 -0.09
Corn: CH19 3.82 -0.01

 

CHS Drayton Cash Prices
Spring Wheat: 5.36 -0.40 basis Dec Delivered Drayton
Winter Wheat: 4.20 -0.80 basis Dec Delivered Drayton
Corn: 3.26 -0.56 basis Dec Delivered Drayton
Soybeans: 7.69 -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.

 

© 2018 CHS Inc.