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.

Morning Market Wire

Thursday November 7, 2019 by: Eric Peterson

Drayton will be dumping until 5:00pm today due to the excessive moisture of the crop.

Corn closed nearly unchanged this morning as traders position themselves in front of the WASDE report out tomorrow. Delays in harvest progress from high moisture is also providing support to the market. There could be a fair number of acres that have corn standing well into the winter months, if not all the way to next spring. Look for mostly rangebound trade today ahead of tomorrow’s report.

Soybeans traded higher overnight on renewed optimism surrounding the trade war. The Chinese commerce ministry stated that the U.S and China have remained in close communication and hopes both sides will address each other’s concerns in order to agree on phase one of the deal. Look for slightly higher trade today but ultimately quiet as the market expects a positive report tomorrow.

Spring wheat closed nearly unchanged this morning as the Minneapolis followed the weakness from Kansas City and Chicago markets. News is once again routine without any fresh news to change much. Look for slightly higher trade today due to an increase in world demand and concerning planting progress for Kansas City wheat.

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 Oct 20$10.23$10.05$9.72
CZ20 Oct 20$4.25$4.19$4.02
MZ20 Dec 20$6.16$6.10$5.81
Old Crop PremiumNew Crop TargetTrigger Date
0.286.10 MWZ2011/20/20
0.2810.20 SX2010/23/20
0.184.10 CZ2011/23/20

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.

Morning Market Wire

Wednesday November 6, 2019 by: Eric Peterson

Corn traded higher overnight with the December contract trading a narrow three cent range. It seems we are seeing pre-report positioning as people try to interpret yield reports ahead of Friday’s new supply/demand report. The trade is estimating the USdA yield projection will be released at 167.5bpa, compared to last month’s 168.4bpa. Look for improved weather conditions to allow for an increase in harvest progress which will pressure markets, but the market will find some direction from the report on Friday.

Soybeans closed a fraction lower this morning as the market continues to lack direction and traded within a narrow range overnight. The trade is expecting a friendly report on Friday for soybeans, harvested acres are expected to fall to 75.4 million acres, previously 75.6 million acres, due to the resurveying of Minnesota and North Dakota. Look for mostly narrow trade today as the market will have little to no direction until there is some confirmation of progress on the trade deal and until the report on Friday.

Spring wheat closed nearly unchanged this morning as the Minneapolis followed the weakness from Kansas City and Chicago markets. News is once again routine without any fresh news to change much. Look for slightly higher trade today due to an increase in world demand and concerning planting progress for Kansas City wheat.

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 Oct 20$10.25$10.10$9.72
CZ20 Oct20$4.25$4.19$4.02
MZ Dec 20$6.18$6.05$5.81

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
0.286.10 MWZ2011/20/20
0.2810.20 SX2010/23/20
0.184.10 CZ2011/23/20

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.

Morning Market Wire

Tuesday November 5, 2019 by: Eric Peterson

Corn is trading slightly higher this morning as harvest progress came in behind the average estimates. The crop progress report showed that U.S corn harvested is now at 52% harvested compared to 41% last week and a five year average of 75%. The market was expecting 54%. The November WASDE report will be released this Friday November 8th at 11am. Look for sideways to higher trade as harvest continues to lag behind and the market awaits the USDA report on Friday.

Soybeans futures traded slightly lower overnight as harvest continues to make progress and there are little supportive trade war headlines to push the market higher. The crop progress report showed harvest at 75% complete, in line with estimates and below the 5 year average of 87% complete. Look for slightly lower trade today as the markets await some sort of confirmation that a deal will be completed between the U.S and China.

Spring wheat found support overnight due to supportive demand in the world market. U.S winter wheat planting came in at 89% planted, slightly ahead of the 88% planted 5 year average. Winter wheat emergence was reported at 71% emerged vs. the 5 year average of 74%. Look for slightly higher trade today as world demand seems to be picking up.

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$10.29$10.05$9.73
CZ20 Oct20$4.23$4.21$4.04
MZ20 Dec20$6.20$6.10$5.81

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
0.286.10 MWZ2011/20/20
0.2810.20 SX2010/23/20
0.184.10 CZ2011/23/20

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.

Morning Market Wire

Monday November 4, 2019 by: Eric Peterson

Corn traded lower overnight as the U.S saw a heavy harvest weekend. Weather allowed producers to make decent progress. Harvest progress is expected to have reached 55% over the weekend as there were no major weather issues across the Midwest. Harvest progress was 41% complete last week, and 74% complete last year at this time. Last Friday a few yield estimates were released.. 168.6 and 170bpa, both above the last USDA estimate of 168.4 bpa. Look for choppy trade ahead of today’s progress report.

Soybeans futures traded slightly higher overnight due to continued optimism surrounding trade talks and hopefulness that “phase one” of the trade deal will be completed this month. Decent harvest progress over the weekend is expected bring harvest to 72% complete, compared to 62% complete last week. The market will continue to find strength as we trade optimism from trade war headlines.

Spring wheat traded lower overnight across all three exchanges due to a general lack of fresh news to support the market. Below average temperatures over the next 10 days are expected to cause the winter wheat crop to enter dormancy. Continue to see lower trade as the world supplies continue to increase and demand remains poor.

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$10.31$10.10$9.72
CZ20 Oct20$4.28$4.21$4.03
MW20$6.18$6.15$5.84

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 TargetTriger
0.286.10 MWZ2011/20/20
0.2810.20 SX2010/23/20
0.184.10 CZ2011/23/20

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.

4 essential lubricant tips for winterizing farm equipment

Farm equipment sitting in storage

By Jon Woetzel, Manager Technical Services, Energy Lubricants, CHS from the Cenexperts blog

Harvest is tough. Once you’ve made it through some of the hardest weeks of the year, both you and your equipment deserve some R&R. But before your machines take a long winter’s nap, it’s important to get them ready for sitting dormant in the cold.

Even when your equipment isn’t running, lubricants play an essential role in keeping it protected. That’s why, as part of your yearly winterizing routine, you’ll want to assess your equipment’s fluids. Use these four lubricant tasks to protect your rigs all the way to spring.

1. Get a used oil analysis

Throughout harvest, your machines work overtime to meet the grueling demands of a farm’s busiest time of year. By the end of the season, all that wear and tear can take a toll on an engine, and seemingly small issues at this point can lead to bigger problems come spring.

A used oil analysis is an easy way to catch early warning signs of major issues that could be brewing inside your engine. This is because oil is the lifeblood of your equipment, touching nearly every part inside the engine.

Used oil analysis works by detecting any trace elements present in a sample of used oil from inside your rig. Based on the elements that turn up, lab technicians can identify a number of issues that may be waiting to happen in specific areas of your engine. Fix any issues before putting your equipment away, and you’ll set yourself up for success come time for planting. To get started, you can purchase a used oil analysis kit from your local CHS energy specialist.

2. Replace the engine oil

Once you’ve performed a used oil analysis, you may also want to consider an oil change before you put your machines away for winter. This is especially true if the results of your analysis reveal any traces of wear. After you make any repairs recommended by your analysis, give your machines some fresh, clean oil so you don’t leave acids and contaminants festering inside your engine for months on end.

Even if your used oil analysis comes back clean, you may still want to consider replacing your oil before winter. Remember, the longer an oil has been used, the less effective it becomes at protecting against rust and corrosion.

If you’re getting close to your change interval, it’s best to replace oil this season instead of waiting until spring. Just be sure to run the engine for at least 10 minutes before storing your rig to allow the oil to circulate. For protection all winter long, try a high-quality engine oil from Cenex such as MAXTRON® ENVIRO-EDGE® synthetic diesel engine oil, engineered for maximum lifespan and excellent protection against corrosive wear.

3. Top off your hydraulic tank

Another lubricant tip for winterizing your equipment is to top off hydraulic tanks. To function properly, hydraulic systems need to breathe, but since they’re not airtight, they’re prone to letting in moisture as equipment sits all winter. Condensation inside a hydraulic system is bad news due to the harmful corrosion it may cause.

The best way to prevent condensation in your hydraulic system over the winter is to minimize the airspace inside. The less opportunity air has to get in, the lower the chance that moisture will collect. Check your hydraulic fluid level, and if it’s not full, go ahead and top off your tank. Be careful, though, not to overfill. To further minimize condensation, you may also want to consider switching to a hydraulic fluid designed to prolong the life of your system’s seals, like MAXTRON® THF+.

4. Grease up moving parts

Finally, once you’ve taken care of your machines’ other fluids, complete the job by greasing any moving parts. Even though they’ll be sitting still all winter, moving parts can still corrode.Not only will a fresh coat of grease keep your equipment from rusting through the winter but it will also get it moving again easier come spring. For superior protection against rust and corrosion, try a Cenex grease such as MAXTRON® FS.

When the hard work of harvest is over, it can be tempting to overlook details like winterizing your equipment. But the period right after harvest is a valuable opportunity to take care of maintenance tasks that can fall through the cracks during busier times of year. Give your machines some TLC now, and you can both kick back soon for some well-deserved hibernation.

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
SX20(Oct20)$10.28$10.10$9.72
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.

© 2019 CHS Inc.