SunPrairie Grain Morning Comment

MINOT - Jul 15/11 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.

Opening Calls:

Wheat: 2-4 lower, little friendly news has the wheat markets drifting lower into the weekend (Mpls Sept last trade 8.26, KC Sept 7.67 ¼)

Soybeans: 3-5 higher, hot weather worries (Sept last trade 13.84 ¾ )

Corn: 3-5 higher, high temperatures across parts of the corn belt push prices higher (Sept last trade 6.96)

Sunflowers: 0-5 higher, taking cue from higher soybean and crude markets

Canola: 0-5 higher, following a stronger CBOT soybean complex

AOG contract update:

Please submit your FSA578 forms for your AOG contracts for the following commodities:

- HO Sunflowers

- Victory Canola

- Malt Barley

- Flax

- NuSun Sunflowers

- Canola

Please bring in the copies as soon as you have them available in order for your AOG to remain in effect, ASAP .We understand that the FSA office is quite busy and that some will not have them by the July 15th deadline. Our buyers are sympathetic to that situation, please bring your copies in as soon as they are available. We do not need a copy of your maps, just the forms for the acres submitted for your land descriptions. Thank you!

Old Crop Contracts:

For those of you with old crop contracts past their delivery dates: please bring your grain in ASAP. We understand that hauling grain during the wet spring was difficult due to yard and road conditions. Now that things are drying out and planting has come to a close we need to make sure we're getting our old crop contracts cleaned up and delivered on. For those of you delivering to Minot we are taking wheat, sunflowers and flax at our west location. We are taking barley at our east location. For those of you with durum contracts to haul to Minot please call either Jeremy or me. If you are unsure about the delivery dates of your old crop contracts please call so we can get everything straightened out - we appreciate your cooperation!

Yesterday:

By the end of the trading session outside markets were unfavorable for higher grain trade as the US dollar was higher and crude had drifted lower. Grain trade was, essentially, all over the place yesterday. Corn started out higher but profit taking hit the market and pushed prices downward. However, by the end of the day cash prices were up five cents. Soybeans traded higher and were up five cents as well as buying interest was around. Wheat was absolutely all over the place. Spring wheat futures started out lower, were up a nickel, down a few and finished the day eight cents higher on the September contract. A lack of news really kept things bouncing around for wheat.

Today:

A lack of exciting news has the markets mixed at the end of the overnight session. Corn and beans are finding strength from extremely high temperatures forecast for parts of the growing area. Wheat trade will likely be uneventful in front of the weekend, especially with a lack of fresh news. Outside markets are slightly supportive as the US dollar is lower and crude is higher. Canola futures are starting the day lower, but I have a feeling that if soybeans can trade higher, canola might follow right on along.

A lack of really exciting export news, or any other news, will likely keep wheat from doing anything too crazy today. At the end of the overnight session spring wheat is a few cents lower while KC winter wheat has gained two cents. However, contracts are off of their overnight highs. Egypt is out looking to buy some wheat for August delivery. Argentine planting of wheat is wrapping up and should be complete within the next week or so if things aren't too dry. Ideas that the Russian crop could be bigger than current estimates will also weigh on wheat futures due to such stiff export competition coming from the Black Sea region.

Soybeans are slightly worried about weather, especially the high temperatures forecast in the coming week. However, key growing periods for soybeans are weeks away so longer term forecasts are more important for beans. However, if corn is climbing, beans likely will too. Chinese demand seems to be quieting down for the time being and has over the past few months. The news for sunflowers, canola and flax is really quiet right now. These markets will focus on planting numbers and crude/bean oil prices as we move forward for market direction. Black Sea exports will likely put some pressure on things but that will also depend on how this year's harvest goes.

The corn crop will most likely come under some stress this weekend. High temperatures in parts of the corn belt will impact crop pollination. With current demand and usage estimates this market needs all the corn it can get and will be sensitive to any weather changes, for the good and the bad. Argentina is about done harvesting a high yielding corn crop and dry weather will allow for things to get wrapped up pretty quickly.

As always you can reach me at Kayla.Burkhart

To discuss this report further or for specific trade ideas please contact me

directly

Kayla Hoffman

SunPrairie Grain

Kayla.Hoffman@chsinc.com

Toll free: 800.735.4956

Local: 701.852.1429

Fax: 701.839.5515

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