Morning Market Wire

Monday December 9, 2019 by: Eric Peterson

Corn closed a fraction higher this morning as early trade failed to take out the 20 day moving average of $3.80 March futures. The USDA will release the December Supply and Demand report Tuesday at 11:00am. The average trade estimate on corn carryout is 1.910 billion bushels. No major production adjustments are expected to be made at this time. Calls today are for steady to one lower.

Soybeans traded higher once again on optimism that a phase 1 trade deal with China nears. However, the U.S still plans to add additional tariffs on Sunday December 15th. It is estimated that China still needs to buy another 2-3 million tons of soybeans for January, before the Brazilian harvest is available. For November, China imported 8.28 million tons of soybeans, up 34% from October. Look for higher trade today.

Spring wheat traded higher overnight as Minneapolis wheat narrows the spread agains Chicago wheat. The market continues to lack any major fresh news. The December contract will expire this week, below $5.00 and about a dime off contract lows. Stats Canada on Friday trimmed December all wheat production to 32.31mil tons, down from the September estimate of 32.149 mil. Look for mostly mixed 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.)

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!

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 12/6

Friday December 6, 2019 by: Eric Peterson

Corn traded higher overnight, with the March contract currently just below its 20 day moving average of $3.80. The market continues to remain in a narrow range. Large spec funds added to their short position yesterday.. The market remains susceptible to short covering at any time. Look for slightly higher trade today.

Soybeans traded higher overnight, drawing on optimism about a U.S China trade deal. After three days of good gains, January soybeans are getting back within range of their 20 day moving average. China stated that they will waive tariffs on some U.S soybean and pork shipments from the U.S as a gesture of goodwill, however, the quantity of the waivers has not been released. Look for stronger trade today on trade war optimism.

Spring wheat traded higher overnight leading the way in all of the wheats with winter wheat following. We are seeing a tight trading range and within yesterday’s range as futures appear to be consolidating. The March contract has not closed above the 20 day moving average of $5.18 since October. Look for slightly higher 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.)

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!

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 12/5

Thursday December 5, 2019 by: Eric Peterson

Corn closed a fraction lower this morning as the market is unable to establish a clear directional move as news remains routine. Managed money spec funds are estimated net short 115,000 contract and seem content with their current position. As 2019 comes to a close, the market remains susceptible to liquidation and year end positioning. Look for mostly lower trade today without clear direction.

Soybeans found strength for the third consecutive session. Seeing news stories this morning that China is saying tariffs must be cut to reach a phase one trade agreement. Additional and new U.S tariffs on $156B of Chinese goods are set to take effect on December 15th. The January contract is seeing a small rebound to regain the early week loss and is now above Friday’s close. The September low on of $8.65 is support.

Spring wheat traded two sided overnight in relatively quiet trade. The market remains choppy day to day and unable to establish clear direction. Stats Canada is set to release its Production of Field crops report tomorrow with trade estimates for wheat production ranging from 31.4mmt to 34.5mmt. The September estimate was 32.5mmt and they experienced wet conditions throughout harvest.

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.)

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!

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 12/4

Wednesday December 4, 2019 by: Eric Peterson

Corn closed a fraction higher this morning on optimism from the soybean market. But for the most part news remains mostly routine. Managed money funds are estimated net short 110K and have trimmed that position slightly over the past week. This leaves the market susceptible to a short covering rally. Look for slightly higher trade today as the remaining harvest will be slow, hampered by wintery conditions.

 Soybeans saw a bounce overnight on optimism in the U.S/China trade war. Bloomberg is reporting that the U.S and China actually moved closer to a trade deal and that U.S negotiators expect a phase one deal by the Dec 15 tariff deadline for additional U.S tariffs. Technically, the January contract has come close, but the September los of $8.65 is support. Look for strength in the market today after a positive overnight session.

Spring wheat was relatively quiet overnight with the March contact trading a narrow two cent range. The market remains choppy day to day and unable to establish a clear direction, though Minneapolis wheat has been trending lower over the past 30 days.

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.)

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!

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 December 3, 2019 by: Eric Peterson

Corn traded two sided overnight but weaker into the close this morning. The March contract saw a four cent range. March corn sits a about a dime off last week’s low with overhead resistance at $3.91 and support below at $3.73. A winter storm over the weekend continues to disrupt what remains of harvest as some fields have snow and ice on the stalks. Look for slightly higher trade today.

Soybeans traded higher overnight despite little to no progress in the trade war with China. Technically, January contract has the September low of $8.65 as potential support. Brazil weather is generally favorable with rain and additional rain forecasts over the next 10 days. Look for slightly higher trade today.

Spring wheat continues its choppy trade as the market looks for a direction to take. KC and Chicago markets are at the upper end of the trading range, with Minneapolis wheat towards the low side. StatsCanada next production report is scheduled for Friday December 6th. Look for stronger trade today, bouncing off recent lows.

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.)

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!

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 December 2, 2019 by: Eric Peterson

Corn traded fractionally mixed overnight as fund position remains short and up to now don’t appear willing to cover. But the market remains susceptible to short covering at any time. A winter storm over the weekend continues to disrupt what remains of harvest, causing some fields to likely remain until spring. Look for mostly mixed trade today.

Soybeans are trading slightly higher despite seemingly little to no progress in the trade war with China. Weekend stories state that China wants a removal of tariffs for a successful Phase One deal, not just the removal of planned tariffs. The U.S is ready to impose an additional 15% tariff on $156B of Chinese good on December 15th. Look for slightly higher trade today.

Spring wheat traded weaker overnight. Both Chicago and KC markets consolidate at the top end of their higher trending trading ranges while Minneapolis wheat hovers 10-15 cents above contract lows. Look for slightly lower trade today as news remains light and routine.

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.)

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!

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 Board announces fiscal 2019 equity management decisions

CHS will return $180 million in cash patronage and equity redemptions to its owners based on fiscal 2019 earnings.

Of that $180 million, $90 million will be distributed in cash patronage and $90 million will be distributed through equity redemptions.

  • Of the $90 million in equity redemptions, $63 million will be returned to member cooperatives and $27 million to individual members.
    • The $27 million in redemptions of individual producer member equity will be provided based on qualifying requests from individual members (estates and age 70+).
(more…)

Morning Market Wire

Monday November 25, 2019 by: Eric Peterson

Corn traded higher overnight, drawing strength from the wheat markets. Poor weather is expected later this week, which will hinder the remaining harvest. The crop progress report this afternoon will likely show corn harvest between 85 and 95% complete. Look for slightly higher trade today.

Soybeans traded two sided overnight with the January contract trading on either side of $9.00. The soybean market has been in a steady decline since mid-October. Last week, January soybeans closed 21 cents lower. Technical support is down at $8.95 with major support near $8.68. Look for higher trade today on strength from corn market.

Spring wheat was stronger overnight, as concerns grow that there could be too much wet weather for the winter wheat crop before they go dormant. Crop progress will be released this afternoon, providing additional insight into the condition of the crop. Look for higher trade today as Minneapolis wheat is likely to bounce as the market is oversold and has been getting close to contract lows.

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.)

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!

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 21, 2019 by: Eric Peterson

Corn traded two sided overnight with the December contract closing a penny higher. First notice day is next week and we will soon be rolling bids to the March contract. Technically, the December contract is attempting to hold onto the top side of the gap, which begins at $3.68. The Dec/March spread has widened out to 10 ½ cents, and Dec/July at 22 cents. Seasonally, these spreads will narrow as we get past first notice day. Look for mostly steady trade this morning.

Soybeans traded higher overnight after having difficulty yesterday as the session wore on. There is support at the $9.00 level so it may look to test that gap again. That would fill the gap that was made after the November soybeans expired. The President continues to use the tariff threat against China if a deal isn’t signed by December 15th and the Chinese are optimistic that a deal will be signed.

Spring wheat was lightly mixed overnight as news remains routine. Minneapolis wheat is attempting to hold on to the psychological support at $5.00. Chicago wheat has been strong compared KC and Mpls, any strength here will force the other tow markets up. Look for 1-2 cents higher today as Chicago leads the other two markets this week.

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.)

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!

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 20, 2019 by: Eric Peterson

Drayton will be dumping corn and soybeans today from 8:00am to 5:00pm. Please CALL BEFORE YOU HAUL.

Corn traded lower overnight with the December contract trading a two cent range. The market is still hovering just above the gap at $3.67 on the continuous chart. Without any news to spark this mark we continue to trend downward. Poor export demand and seasonals pointing down going into first notice day are keeping prices stagnant. Look for mostly lower trade today as the gap below looks to be the next downside target.

Soybeans higher overnight but lower into the close with the January contract closing two cents higher. Technically, the continuous bean chart is showing some convergence with topside resistance at roughly $9.17. Downside is a bit more unclear but appears to be in the $9.06 area which would get us into the gap that begins at $9.10. Look for mostly quiet trade today as the market awaits export news to move the market.

Spring wheat closed a fraction lower this morning with the December contract trading a four cent range. Minneapolis wheat continues to lag behind with Chicago wheat now at a premium to Minneapolis December. Winter wheat continues to draw strength from declining crop conditions. Look for mostly flat to lower trade today as spread action will likely be the main driver 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.)

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!

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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