SunPrairie Grain Morning Comment
MINOT - Mar 15/13 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:50 AM CDT:
Wheat is down 2-4 cents, markets lose steam after yesterday's upward momentum, spring wheat losses not as bad as hard red winter wheat (Mpls May last trade 7.99 ¼, KC May 7.49 ¼)
Soybeans are up 1-2 cents, correcting (a little) after this week's hard losses, seems the sideways trading pattern continues (May last trade 14.36)
Corn is down 1-2 cents, following wheat prices, market settles down (May last trade 7.16 ¾)
Sunflowers are 5-10 cents higher, bean oil was tired of trading lower, now looking up
Canola is up 10-15 cents, following bean oil and crude prices, selling seems to have exhausted itself for the time being
*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 31st. 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. DP availability is subject to space limitations at any given location.
Yesterday:
Wheat prices worked their way higher yesterday on some of the best weekly export sales seen in over two years. Winter wheat prices did better than spring with hard red winter gaining 15 cents and spring gaining six cents. Corn followed stronger wheat prices and also saw some strength from better than recently reported weekly export sales, cash prices finished the day up six cents. Soybeans did not fare so well in yesterday's trading session. Export sales for soybeans were at the low end of market estimates as we see buyers switching to South America for supply. Soybean cash prices were down 12 cents yesterday. Fund selling in the canola market seems to be running out and we saw prices increase by 20 cents/cwt. Sunflowers were lower with soybeans, losing a nickel for the day.
Today:
Grain markets are mixed to mostly lower so far this morning, but prices are not drifting too far away from unchanged. It seems that wheat prices have lost their strength found from yesterday's supportive demand news as winter wheat is down about four cents and spring wheat is a penny lower. Soybeans tried trading a bit higher but struggled to do so and are now sitting just under unchanged. Corn is mixed and lost in the middle of things, bouncing around and currently nearby futures are unchanged while everything else is down a penny. Outside markets are favorable with the US dollar lower and crude prices about 35 cents/barrel higher at the moment. The following was sent to me this morning by Country Hedging Market Analyst Tregg Cronin - I'm passing it along as I figure we could use a Friday funny.
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"John D. Rockefeller got out of the stock market before the crash in 1929 when the guy who shined his shoes started giving him stock tips. What kind of sign is it when Hollywood actresses start buying stocks at all-time highs...?" -Tregg
There is little fresh news to report for the wheat market this morning. It seems today's price action is being driven by yesterday's....we were higher yesterday and without continued demand news we're going to be lower today. The hard red winter wheat futures remain very much in a weather market. When rain falls, prices go down, when weather heats up and dries out, prices go up. So we're going to bounce around in that market until more is known about the condition of the crop. Spring wheat futures could be finding themselves in a little bit of a weather market as well today. It seems that the amount of snow forecast for the top producing state of North Dakota has prices on edge. Decreases to some crop production forecasts of European growing areas could provide some support.
It seems that soybeans cannot make up their mind as to which way they want to trade today. So far we've been fairly mixed and perhaps at the pit open we'll see prices work their way a little bit higher. The market is extremely depressed about the lack of demand, that was only confirmed with yesterday's weekly export sales report. There are also some worries that China could cancel some purchases as ports become congested with deliveries of soybean purchases...hopefully we will not see that happen as that is the last thing the market needs right now. The best thing we can hope for today is to see some stabilization after the sell off that has been seen this week. Other oilseeds look to be doing pretty well with bean oil being stronger and canola futures a little bit higher.
Corn futures look like they're following wheat a little this morning but a little bit of the reduction in prices could be credited to weather as well. It seems that the dry, western areas of the Corn Belt are to get some precipitation over the weekend. That, combined with other recent precipitation, will work to reduce the impact of the drought in the WCB and could work to end it all together, which would not be favorable for market prices. However, I'm hearing some chatter about corn seed being returned in the southern US as growers look to plant more cotton due to a recent run up in prices. Now the question becomes - just how many intended corn acres will switch to other commodities?
Stay safe this weekend!
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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