CHS Drayton: Morning Market Wire

Monday December 17, 2018 by: Eric Peterson –
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Market Summary

Corn closed a fraction higher this morning with the March contract trading a narrow two cent range overnight. Since the beginning of the month, March corn futures have been stuck in a sideways trading range between $3.80 and $3.87. All eyes will be watching report for additional Chinese business. The trade appeared to be disappointed with last week’s totals. The prospect of China buying U.S corn has trader’s hopeful another rally may happen.

Soybeans traded higher overnight as trade optimism continues to offer support but the January contract closed six cents off session highs. Technically, the next level of resistance is $9.28 with support at last Monday’s gap from $9.09-$9.09¾. Weather forecasts are showing rain for Brazil over the next 10 days. This should stabilize an excellent crop that experienced some dryness. Look for lower trade today if we do not hear of additional soybean sales to China this morning.

Spring wheat closed a penny higher this morning as trade remains choppy. The March contract remains at the top end of the 30-60 day trading range. It now looks like winter wheat acres will be down 5% when initial estimates were for a 10-15% increase. All wheats are trading stronger in hopes to see better exports in the near futures.

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)
$10.06
$9.84$9.53
CZ19 (Dec)
$4.28
$4.14
$4.04
MWZ19 (Dec)
$6.31$6.23$6.12

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
.186.50 MWZ1911/20/2019
.2510.20 SX1910/23/2019
.164.10 CZ1911/20/2019

Futures markets as of 8:30 AM

Minneapolis Wheat:MWEH195.85+0.01
Kansas City HRW:KWEH19 5.225.22+0.04
Soybeans:SF199.04+0.03
Corn:CH193.850.00

CHS Drayton Cash Prices

Spring Wheat:5.35-0.50 basisDecDelivered Drayton
Winter Wheat:4.42-0.80 basisDecDelivered Drayton
Corn:3.29-.056 basis
DecDelivered Drayton
Soybeans:7.79-1.25 basis
DecDelivered 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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