Morning Market Wire

Wednesday September 11, 2019 by: Eric Peterson

Market Summary

Corn closed a fraction lower this morning after trading two sided in a narrow three cent range overnight. The 11-15 day weather forecast is starting to show a cooler pattern emerging around September 20th. Traders will be watching for confirmation of any patter change, because of the late maturity of this years’ crop. Look for mostly light trade today ahead of tomorrow’s USDA Supply and Demand report.

Soybeans were mostly weaker overnight with the November contract trading a five cent range. Technical resistance is at the 50 day moving average of $8.85. Strength came yesterday as rumors circulated that China plans to buy more U.S soybeans while they continue to engage in trade talks with the U.S. However, news reports today say soybeans and meat are not included in the break and markets are giving back some of those gains.

Spring wheat traded slightly weaker overnight as the oversold bounce may be over for now. The December contract is just below the 20 day moving average of $5.07. Tomorrow’s USDA report is not expected to effect the wheat market much as production will most likely not be changed until the next report on September 30th. Look for slightly lower trade today.

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

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
0.155.40 MWH202/22/2020
0.159.40 SH202/22/2020
0.253.70 CH202/22/2020

Spring Wheat Protein Scales

-.03 cents ea. 1/5 down from 14.0% to 13.0%

-.03 cents ea. 1/5 down from 13.0% to 12.0% (Max -.30)

+.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.

© 2020 CHS Inc.