SunPrairie Grain Morning Comment
MINOT - Mar 8/13 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:25 AM CDT:
Wheat is -1-3 cents, market quiet in front of USDA report, improvements to some growing areas have futures struggling (Mpls May last trade 7.95 ¼, KC may 7.34)
Soybeans are 2-4 higher, great export sales indicate strong demand and Brazilian logistics remain slow (May last trade 14.76 ½)
Corn is 1-3 higher, waiting for USDA report, taking cue from soybean market (May last trade 6.93 ½)
Sunflowers are 5-10 lower, bean oil off a bit this morning after trading a little higher yesterday, may recover with soybeans
Canola is 10-15 cents lower, recent decline in prices most likely due to profit taking as there is little fundamental reason for canola to drift lower
*CHS Harvest for Hunger*
We are in the midst of the annual CHS Harvest for Hunger campaign! CHS Country Operations locations are working together to raise over two million meals for hungry families. Best of all is that for every donation we collect, CHS Country Operations will also make a local contribution to help our friends and neighbors right here in our community. If you would like to make a contribution to Harvest for Hunger you can do so by selling grain or making a cash donation at your local SunPrairie Grain office by March 20th. Let's work together to make this the most successful Harvest for Hunger yet!
*Delayed Price Program*
SunPrairie Grain is offering free DP until July 31st, 2013 on spring wheat and winter wheat delivered by March 15th. All new deliveries of corn and soybeans can be put on DP for 5 cents/bushel/month. Sunflower new deliveries can also be put on delayed for 15 cents/cwt/month.
Yesterday:
The Dow saw another good performance yesterday and it looks like investors are pretty excited about being back in stocks, further boosting recent gains. The US dollar was lower yesterday and crude oil prices were higher, this is action that is usually favorable for the grain markets. After chopping around and being fairly uneventful in early trade the grain markets eventually worked their way higher in yesterday's session. Spring wheat finished the day up 12 cents and hard red winter wheat was up a dime. Wheat export sales for the week were pretty good and ideas that futures were oversold were enough to push prices higher. Soybeans were up seven cents for the day as great export sales pulled futures higher. Corn saw fairly poor exports but prices rose with wheat and soybeans and prices finished the day up three cents. Sunflowers were up 15 cents for NuSuns and 5 cents for birdfood. Flax was down 40 cents for the day.
Today:
Grain futures are mixed with corn and soybeans higher and wheat markets mostly lower to start. The outsides are showing a higher US dollar and crude prices about 20 cents/barrel lower at the moment. The stock markets are higher again this morning and I have to wonder when the buying will succumb to a round of selling, pushing things a bit lower. Encouraging economic news is that the US unemployment rate has dropped to 7.7%, could we finally be starting to recover from the Great Recession? The grain markets look to trade fairly choppy today in front of the USDA report which will be released at 11 this morning. The report looks to be fairly uneventful, so I don't know how much of an impact it will have on prices.
Wheat markets will be looking forward to any fresh news to trade off of. There are ideas that we could see increases to the global supply estimates in today's USDA report, which may weigh on prices a bit. Additionally, recent precipitation could also have wheat gains limited today. However, many major hard red winter wheat growing areas still remain fairly dry and it's going to take a lot to relieve that moisture stress. Currently wheat prices are sitting just below unchanged and we could see some strength come from rising corn and bean markets.
The oilseed markets are also awaiting what the USDA has to say today. Canola futures are a bit lower as the market was starting to feel overbought and a correction was due. Bean oil is off a little this morning too and overall it looks to be a tough day for the oilseed markets. The one glimmer of hope is rising soybean prices which should hopefully keep prices supported. However, the market is going to be watching South American crop estimates pretty closely and hoping for reductions in the Argentinean crop. If those reductions do not come we could see soybeans struggle to hold ground today.
Corn futures are trading a couple of cents higher this morning but not really doing anything too eventful at the moment. The market is just waiting for what the USDA has to say and isn't really expecting any favorable news. The general consensus is that there will be an increase to the Argentine crop size and an increase to US ending stocks due to a decrease in exports.
We'll see what today brings but look for it to be a fairly uneventful day until the market can digest reports released at 11 this morning.
Kayla Burkhart
Broker/Procurement
SunPrairie Grain
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1600 27th St SE | Minot, ND 58701
P 701.857.9322 | F 701.839.5515 | C 701.720.4682
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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