CHS Drayton: Morning Market Wire (06/18)

We will be having Marketing Meetings June 25th and June 26th.  NDSU Professor Frayne Olson will be giving a market update on corn, soybeans and wheat. Please call the office for details.

Monday June 25th– Manvel Community Center 9:00am

Monday June 25th– Cavalier Country Club 12:30pm

Tuesday June 26th– Kennedy VFW 10:00am 

-We have several HOPPER BINS FOR SALE, please call the office for details. 

Market Summary

Corn was weaker overnight yet again as good growing weather and trade concerns pressure the market.  The July contract was able to stay above its new contract low from last Friday.  December corn put in a contract high of $4.29 on May 24th and has now set its contract low of $3.79.  Funds continue to trim their length with a reported long of 84,500 contracts down 55,800.  Look for weaker trade off the open due to good growing conditions and trade concerns.

Soybeans traded two sided overnight with the July contract trading a wide twelve cent range.  July soybeans are currently just above $9.00, and front month soybeans have not traded below $9.00 since spring of 2016.  The Commitment of Traders showed funds being aggressive sellers of soybeans, as they sold 48,000 contracts bringing them to a net short of 11,400 contracts.  Look for lower trade on concerns with Chinses tariffs and favorable growing conditions.

Spring wheat traded lower overnight with the July contract trading a three cent range.  Currently, technical support is near $5.63 with resistance at $5.87.  The markets were weaker overnight on continued harvest pressure.  Winter wheat harvest has showed below average yields with decent quality and protein.  Look for lower trade off the open as we add to an already ample wheat supplies.

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
SH19 (Mar.) $10.02 $9.50 $9.41
CH19 (Mar.) $4.25 $4.14 $3.89
MWH19 (Mar.) $6.36 $6.20 $6.09

 

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
0.11 6.10 MWZ18 11/21/2018
0.29 9.50 SX18 10/24/2018
0.12 3.90 CZ18 11/14/2018

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEN18 5.69 -0.01
Kansas City HRW: KWEN18 5.12 -0.07
Soybeans: SN18 9.03 -0.02
Corn: CN18 3.58 -0.03

 

CHS Drayton Cash Prices
Spring Wheat: 5.42 -0.25 basis June Delivered Drayton
Winter Wheat: 4.32 -0.80 basis June Delivered Drayton
Corn: 3.10 -0.48 basis June Delivered Drayton
Soybeans: 8.18 -0.85 basis June Delivered Drayton

 

Spring Wheat Protein Scales

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

-.09 cents ea. 1/5 down from 13.0% to 11.5% (Max -1.15)

+.09 cents ea. 1/5 from 14.0% to 15.0%

+.00 cent bump at 15.0%  pro

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.

 

Encourage your cooperative to apply for Seeds for Stewardship matching grants

Seeds for Stewardship matching grant
Spring and warmer weather are upon us. It’s a great time to plant the seed of community support and grow pride in your community by encouraging your local cooperative to apply for a Seeds for Stewardship matching grant. Since Seeds for Stewardship began in early 2017, CHS has partnered with more than 70 local cooperatives on more than 100 projects in rural communities. Your cooperative could be next!

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Soil Whisperers

White Hall, Ill., farmer Maria Cox, left, and her crop advisor Kyle Lake were named 2018 4R Advocates by The Fertilizer Institute. Photo by Erin Williams, CHS.

Adapted from C magazine article by Peg Zenk

READ MORE: Find the entire C magazine article here.

Not all risk is bad. While farmers work hard to reduce financial risk, innovators take calculated risks when it comes to new when it comes to new agronomic approaches.

Illinois farmer Maria Cox is one of those innovators. She and her crop advisor, Kyle Lake, with CHS in Carrollton, Ill., were named 2018 4R Advocates by The Fertilizer Institute. Each year, the award recognizes five farmer-retail agronomist teams who are dedicated to implementing the 4Rs of nutrient stewardship: using the right nutrient source, at the right rate, at the right time and in the right place.

In conversations with Cox and others who have actively embraced the 4Rs, common management challenges and strategies emerge. Among all the technologies and tactics they’ve tried, these growers point to strategies that are producing the biggest benefits in terms of soil health and the bottom line. (more…)

Start the New Season with a New Grease

cenex grease

Using the right grease is one of the most important decisions you can make as you prepare equipment for the high-pressure planting season. But recent updates in grease formulations might make you do a double take as you get ready for spring.

“When you put the grease into your grease gun and on bearings, you’re going to notice it looks different,” says Andrew Hamilton, director of technical services and quality for Cenex® lubricants and refined fuels. “That is on purpose. You’re getting a better grease.” (more…)

Anatomy of a grain trade

anatomy of a grain trade infographic

The global grain trading business is risky. Avalanches and mudslides can stop trains in their tracks. Striking union workers can halt grain loading at port. Freezing sea spray and high swells can delay ocean vessels for days. Commodity prices and costs shift constantly.

While those situations may be beyond a grain company’s control, there are countless other factors that a team of CHS experts successfully manages 365 days a year – always focused on efficiency, safety and profitability. (more…)

CHS reports a net income of $346.7 million for the first half of fiscal 2018

CHS income fiscal 2018

CHS Inc., the nation’s leading farmer-owned cooperative and a global energy, grains and foods company, today reported net income of $346.7 million for the first half of its 2018 fiscal year (six-month period ended Feb. 28, 2018), compared to net income of $223.7 million for the same time period a year ago.

Consolidated revenues for the first half of fiscal 2018 were $14.9 billion, down from $15.4 billion for the first half of fiscal 2017. Pretax income was $185.0 million and $249.1 million for the first half of fiscal 2018 and 2017, respectively. (more…)

Demonstrating safety in the communities where we work

ResponsibleAg

CHS now has more than 100 ResponsibleAg certified facilities from its CHS Country Operations and CHS Agronomy divisions. Out of all U.S. fertilizer facilities receiving this certification, CHS represents 12 percent of the total.

ResponsibleAg was started in 2014 to assist agribusinesses as they sought to comply with federal environmental, health, safety and security rules regarding the safe handling and storage of fertilizer products. The rigorous application process includes a checklist of more than 320 questions about federal regulatory requirements. To be certified as a ResponsibleAg facility, locations must be 100 percent compliant with the entire checklist. (more…)

Students storm the Hill with fresh perspectives and CHS support

When people ask CHS Government Affairs staff what it’s like to work as a lobbyist in Washington, D.C., they’re always curious about how the political landscape has changed in recent years. Sarah Gallo, director, CHS Government Affairs, is happy to share anecdotes, but she’d rather discuss how the conversation about agriculture has evolved. Students, farmers and the ag industry will carry that message to Capitol Hill on National Ag Day, to be celebrated March 20 in Washington, D.C., and across the country. (more…)

Winds of change in China

global agriculture

By Joe Lardy, research manager, CHS Hedging

China has had a long-standing policy to be self-sufficient in key food source production, including rice, wheat and corn. In 2004, the Chinese government made historic adjustments to its agriculture policy when it eliminated taxes on agriculture and created a new system of subsidies for key commodities. The subsidies supported seed and machinery purchases and resulted in improved infrastructure.

This set the stage for a huge buildup of acreage devoted to corn production. (more…)

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