CHS Drayton Morning Market Wire

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Market Summary

Corn saw quiet trade overnight after Tuesday’s USDA report raised the U.S carryout after lowering ethanol usage. March corn remains rangebound at $3.84 to $3.87, above the 50 day moving average of $3.79. Corn exports were 1.064mmt vs estimates of 1.0-1.5mmt in today’s weekly report. Look for slightly higher trade today as the daily chart looks trapped in consolidation, but the weekly chart suggests more room for upside.

Soybeans closed a penny lower this morning with the January contract trading a narrow two cent range. We continue to see evidence and hear talk of China buying soybean for state owned reserves which doesn’t have an import tariff. Nearby soybeans traded to their highest price since June 15th yesterday after China’s return. More sales will be needed soon to maintain this rally.

Spring wheat closed two cents higher this morning trading a narrow range overnight. Wheat export sales were 754tmt compared to estimates of 500-800tmt. The recent move up seems more technical and money driven than fundamental. Kansas City wheat rallied to the highest price in a month in overnight trade, but U.S wheat was the highest offer in yesterday’s Egypt tender.

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) $10.19 $9.93 $9.64
CZ19 (Dec) $4.28 $4.16 $4.04
MWZ19 (Dec) $6.32 $6.23 $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 6.50 MWZ19 11/20/2019
0.33 10.00 SX19 10/23/2019
0.18 4.10 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEH19 5.85 +0.02
Kansas City HRW: KWEH19 5.17 +0.06
Soybeans: SF19 9.18 -0.01
Corn: CH19 3.84 -0.01

 

CHS Drayton Cash Prices
Spring Wheat: 5.40 -0.45 basis Dec Delivered Drayton
Winter Wheat: 4.37 -0.80 basis Dec Delivered Drayton
Corn: 3.28 -0.56 basis Dec Delivered Drayton
Soybeans: 7.93 -1.25 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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