SunPrairie Grain Morning Comment
MINOT - Mar 19/13 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:40 AM CDT:
Wheat is up 0-2 cents, slight recovery from yesterday but in general news remains bearish for the wheat markets right now (Mpls May last trade 7.89, KC May 7.45)
Soybeans are down 3-6 cents, selling pressure continues as South American harvest progresses at a good pace (May last trade 14.04 ¾)
Corn is mixed with old crop slightly higher and new crop about three cents lower, seems sellers have entered the market after recent price spikes (May last trade 7.21)
Sunflowers are 5-10 cents lower, with bean oil falling off this morning
Canola is down 10-20 cents, futures falling with soybeans, general selling interest
*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:
Sorry for missing the morning wire but the bad weather had me to work half an hour late. The European debt crisis had the financial markets all turned around yesterday and the US dollar was higher with the news. A higher US dollar pressured the commodity markets and general liquidation resulted in mostly lower prices across the board. Corn futures were the only to muster their way higher by the close as prices finished the day up three cents. Soybeans did not fare so well due to rumors of Chinese purchase cancellations and prices finished the day 17 cents lower. Wheat followed along due to profit taking and favorable hard red winter wheat crop weather. Spring wheat was down eight cents on the day and HRW was seven cents lower. Sunflowers also finished the day down a dime.
Today:
Grain futures are mixed this morning as it seems the markets just cannot figure out which way they want to trade right now. Currently, soybeans are leading the way lower again, old crop corn futures are higher while new crop are lower and the two wheat markets we concentrate on are slightly higher. The US dollar is a little lower this morning and crude prices are about 12 cents/barrel higher. The financial markets continue to focus on the events in Cyprus and whether or not the onetime tax on bank deposits will pass. There will not be an update tomorrow morning as I have a morning meeting.
Wheat futures are a bit mixed up today as they can't make up their mind. On the one hand, selling pressure yesterday was pretty strong and the markets would like to recover. On the other hand any news for the wheat markets right now just does not seem favorable. Hard red winter wheat moisture chances look pretty good for the nearby forecasts. US HRW crop conditions have improved with the Kansas crop up 2% this week to 29% good to excellent and the Oklahoma crop seeing a 4% surge to 24% g/e. The markets are struggling with the bumps in ratings...however a crop rated at 25% good to excellent is nothing to get excited about in my opinion. There are indications that Egypt could start reducing its wheat purchases due to the country's financial concerns. Egypt typically buys a lot of its wheat from Russia...if Russia loses business to that customer it opens up more supply to compete for business with US wheat.
Soybeans are having a tough time as South American weather looks pretty good for harvest to continue. Additionally, it looks like Argentinean harvest could begin shortly, only adding weight to the market. Brazilian harvest is reportedly about 60% complete right now but logistics remain a mess. A large buyer from China has cancelled some shipments, giving delays as the reason. Is China really cancelling due to delays? Or is it because prices have fallen and they want to buy the beans at a lower price? If it is because of delays will they repurchase the soybeans from the US, which can ship faster? Canola and soybean oil futures are struggling today as well and it looks like we'll probably see another lower day for the oilseeds.
It seems that every day we see new estimates for 2013 US corn acres. The general consensus is that US corn acres will be lower than previously thought and US soybean acres will increase. There's no doubt that we will still see high intentions for US corn acres, it's just that many are thinking that initial estimates were a bit too aggressive. Corn futures look to be mixed today with old crop prices higher due to tight supplies and new crop lower on ideas that those supplies are coming. Ukraine says it is to export more corn which will only add to the global market competition.
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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