CHS Drayton Morning Market Wire (12/4)

Corn closed a fraction lower this morning and traded lower the entire overnight session. The market is weaker in response to the uncertainty of the trade truce. Expert crop scout, Dr. Cordonieer has left his Brazil production estimate unchanged at 96mmt, with a neutral to higher bias. Overall demand for U.S corn remains strong both domestic and global. Look for slightly lower trade today on profit taking.    (more…)

CHS reports fiscal 2018 net income of $776 million

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 $775.9 million for the fiscal year that ended Aug. 31, 2018.

“Our fiscal 2018 results show the progress we are making on the priorities we set for CHS,” said Jay Debertin, CHS president and chief executive officer. “Our year-over-year financial performance shows good improvement, our balance sheet is solid, and our relationships with cooperative owners are strong. The diverse CHS business platform allowed us to deliver improved earnings and enables us to return $150 million in cash patronage and equity redemptions to owners even as we navigated challenging market conditions.” (more…)

CHS Drayton Morning Market Wire (12/3)

Corn traded higher overnight with the March contract closing four cents higher, four cents off the overnight high of $3.85. Last night’s high is a new three week high. Support came overnight after U.S and China agreed to a 90 day truce in their current trade war. Look for mostly higher trade today on strength in soybeans and friendly trade news.

Soybeans traded higher overnight but closed well off the overnight highs as the market got excited about the progress on China/U.S trade. The January contract gapped higher over $9.00 for the first time since August. November 2019 futures presents a selling opportunity at $9.50. The U.S agreed not to implement an additional 15% tariffs on an additional $267 billion, while China agreed to “buy agricultural products from the U.S.” However, China has not stated if they will reduce tariffs on U.S grains.

Spring wheat traded higher overnight on strength in the corn and soybean markets. March Minneapolis wheat closed four cents higher, two cents off the session high. Russian wheat exports climbed 20.4mmt so far this year, that’s up 19% year on year according to Russia’s Ag ministry. They are maintaining they’ll reach 34mmt this year. Look for mostly higher trade on the Trump bump.

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
SX19 (Nov) $10.08 $9.82 $9.53
CZ19 (Dec) $4.26 $4.15 $4.02
MWZ19 (Dec) $6.39 $6.31 $6.11

 

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
0.18 6.50 MWZ19 11/20/2019
0.26 10.20 SX19 10/23/2019
0.15 4.10 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEH19 5.80 +0.04
Kansas City HRW: KWEH19 5.04 +0.04
Soybeans: SF19 9.11 +0.16
Corn: CH19 3.81 +0.04

 

CHS Drayton Cash Prices
Spring Wheat: 5.40 -0.40 basis Dec Delivered Drayton
Winter Wheat: 4.24 -0.80 basis Dec Delivered Drayton
Corn: 3.25 -0.56 basis Dec Delivered Drayton
Soybeans: 7.76 -1.35 basis Dec 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.

 

CHS Drayton Morning Market Wire (11/30)

Corn traded higher overnight with the March contract trading a narrow two cent range. December corn remained above $3.60, but still trails the 50 day moving average of $3.66. The market remains flat ahead of the G-20 Summit. The G-20 Summit begins today with President Trump expected to meet with the Chinese tomorrow. Look for mostly quiet trade today as the market positions itself in front of the weekend. (more…)

CHS Drayton Morning Market Wire (11/28)

Corn closed two cents higher overnight with the March contract closing at the overnight high of $3.58.  Short term resistance for March corn is at $3.73 with support at $3.65. The last crop progress report showed corn at 94% harvested, lagging behind the five year average of 96%. Look for mixed to slightly higher trade as news remains light and uneventful.         (more…)

CHS Drayton Morning Market Wire (11/27)

Corn was able to stay above yesterday’s low of $3.55 during the overnight session but is well below any major technical moving averages. Overall news remains light and routine and President Trump indicates he is ready to move forward on increased tariffs on Chinese goods. A trade deal resolution brings hope that China will resume buying U.S DDGs, and sorghum and possibly ethanol.             (more…)

CHS Drayton: Morning Market Wire (11/20)

We will be closed Thursday November 22nd and Friday November 23rd for Thanksgiving. 

Corn closed a fraction higher this morning with the December contract trading a narrow two cent range overnight.  Technically, December corn sits below former support level of the fifty day moving average of $3.64.  This may now be resistance.  December 2018 corn is currently 20 cents off contract lows and 90 cents off contract highs, and the last few contract have expired at contract lows… Look for slightly higher trade today ahead of the holiday weekend.

Soybeans traded two sided overnight with the January contract relatively narrow six cent range.  The market found support overnight on fund buying.  China/U.S trade relations remain in the forefront of the news.  Many remain optimistic that a an agreement will return to normal U.S export to China, but a return to normal, regardless of a deal, appears doubtful.  Look for slightly higher trade today.

Spring wheat closed a fraction higher this morning with the March contract trading a narrow two cent range overnight.  Bids have now rolled from December futures to March futures. U.S winter wheat seeding is 93% complete as time is running out to plant it all.  The crop is rated at 53% good/excellent, up 2% from last week.  Look for steady to higher trade ahead of the holiday weekend.

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
SX19 (Nov) $9.80 $9.56 $9.35
CZ19 (Dec) $4.18 $4.08 $3.98
MWZ19 (Dec) $6.35 $6.04 $6.13

 

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
0.13 6.30 MWZ19 11/20/2019
0.33 9.55 SX19 10/23/2019
0.13 4.05 CZ19 11/20/2019

 

 

Futures markets as of 8:30 AM
Minneapolis Wheat: MWEH18 5.70 +0.01
Kansas City HRW: KWEZ18 4.73 0.00
Soybeans: SF19 8.76 +0.02
Corn: CZ18 3.62 0.00

 

CHS Drayton Cash Prices
Spring Wheat: 5.30 -0.40 basis Nov Delivered Drayton
Winter Wheat: 3.93 -0.80 basis Nov Delivered Drayton
Corn: 3.07 -0.55 basis Nov Delivered Drayton
Soybeans: 7.36 -1.40 basis Nov Delivered Drayton

 

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 -0.40)

+.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.

 

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