CHS Drayton: Morning Market Wire

Thursday, May 16, 2019
by Eric Peterson

Market Summary

Corn traded higher overnight as forecasts continue to show wet weather in the extended forecast.  The seven-day precipitation models continue to show heavy moisture accumulations in much of the western corn belt, stretching into Northern Illinois and Southern Wisconsin. The overly wet weather continues to leave concerns about further delays in planting.  Look for mostly higher trade today on continued planting concerns.

Soybeans closed a nickel higher this morning with the July contract closing two cents off the overnight high of $8.42.  We saw some short covering overnight on wet spring planting delays.  Later planted soybeans do not yield as well as early planted soybeans.  However, gains continue be limited on uncertainty about acres being shifted form corn to soybeans.  Look for higher trade today on spillover strength from the corn market.  The long term outlook still looks bearish as we remain over supplied with not enough demand.          

Spring wheat traded higher overnight with the July contract closing at the overnight high of $5.23.  The market found support overnight on spillover strength from corn.  Additional strength in wheat is likely due to short covering in the Kansas City and Chicago markets.  Look for higher trade today on short covering and strength from corn.  

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
SH20 (Mar) $9.42
$9.05

$8.87
CH20 (Mar) $4.28
$4.18

$4.05
MWH20 (Mar) $5.84
$5.69

$5.52

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 are 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
0.10 5.65 MWH20 2/22/2020
0.21 9.00 SX19 10/23/2019
0.17 4.10 CH20 2/22/2020

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEN19 5.23 +0.07
Kansas City HRW: KWEN19 4.10 +0.08
Soybeans: SN19 8.40 +0.05
Corn: CN19 3.75 +0.05

CHS Drayton Cash Prices
Spring Wheat: 4.63 -0.60 basis May Delivered Drayton
Winter Wheat: 3.30 -0.80 basis May Delivered Drayton
Corn: 3.25 -0.50 basis May Delivered Drayton
Soybeans: 7.23 -1.17 basis May 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.

© 2019 CHS Inc.