Morning Market Wire

Wednesday October 30, 2019 by: Eric Peterson

For now, we are not taking wheat at Drayton and the stations as we need to make room for corn and soybeans. Please call with any questions.

Corn trade was quiet overnight with the December contract trading a narrow three cent range. December futures are trading their comfortable range with the news we have, harvest pressure is picking up and the trade is already looking ahead to the November 8th WASDE to see wheat the balance sheet adjustments will look like. Look for mostly flat trade today as the market remains rangebound.

Soybeans closed a penny higher this morning with the January contract trading a five cent range overnight. Soybeans prices were higher on continued hopes of Chinese business or a final contract signing at the mid November Summit meeting. But weakness came on chatter that a deal may not get done in time for signing at the Summit meeting. Look for lack of Chinese purchases of U.S soybeans to continue to weigh on the market.

Spring wheat traded lower overnight on all three wheat exchanges. Minneapolis wheat is getting near the next technical support level of $5.21 with resistance above at $5.36. Choppy trade is expected as positions get squared away ahead of first notice day and the end of the month. While mills are thought to be pretty well supplied with wheat, there seems to be that somebody that will pick up additional supplies because its relatively cheap.

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 BonusDaily Price PlusFutures at 8:00am
CZ20 (Oct 20)$4.25$4.22$4.05
MZ20 (Dec)$6.06$6.00$5.77

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 PremiumNew Crop Target Trigger Date
0.286.10 MWZ2011/20/2020
0.2810.20 SX2010/23/2020
0.18$4.10 CZ2011/23/2020

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.

© 2020 CHS Inc.

COVID-19 UpdatesLearn More