Morning Market Wire

Friday November 8, 2019 by: Eric Peterson

Corn is trading slightly lower this morning as traders await the November WASDE report that will be released today at 11:00am. The average trade estimate for corn yield is 167.5 bushels per acre, down from USDA’s previous projection of 168.4 bushels per acre. Trade estimates the last three reports have been too low compared to the USDA projections and the market seems to be expecting another negative report. Look for mostly steady trade ahead of the report.

Soybeans traded two sided overnight as the market awaits for today’s report. Estimates for soybean yield on this morning’s report average at 46.6 bushels per acre, compared to last months 46.9bpa. Production estimates are averaging 3.51 billion bushels, compared to 3.550 billion bushels last month. The trade is also estimating a drop in acres due to resurveying of Minnesota and North Dakota. Look for steady trade ahead of today’s report.

Spring wheat as well as all of the wheat exchanges traded lower overnight. Weakness came as demand remains poor and there are no fresh headlines to trade. Technical weakness and spillover weakness in the corn market provided additional pressure. Look for sideways to lower trade as the market continues to fail to find anything new to trade.

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
SX20 Oct20$10.24$10.05$9.71
CZ20 Oct20$4.23$4.16$3.98
MZ20 Dec20$6.11$6.05$5.74

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 TargetTrigger Date
0.246.10 MWZ2011/20/2020
0.2910.20 SX2010/23/2020
0.154.20 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.

© 2019 CHS Inc.