SunPrairie Grain Morning Comment
MINOT - Mar 26/13 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:55 AM CDT:
Wheat is up 1-3 cents, market astonishingly quiet in front of Thursday's USDA reports, some concern about hard red winter wheat growing temperatures (Mpls May last trade 8.06 ¼, KC May 7.60)
Soybeans are up 2-4 cents, tight old crop supplies versus progressing South American harvest, demand looks strong (May last trade 14.40 ¼)
Corn is 2-5 lower, prices give up what was gained yesterday, light selling in quiet trade lets prices drift lower (May last trade 7.28 ½)
Sunflowers are unchanged, bean oil is mixed this morning, will look to beans and crude for direction
Canola is up 5-10 cents, hopefully recovering from yesterday's late selloff
*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:
Grain markets were mixed and seemingly confused yesterday. Wheat spent the day trading both sides of unchanged with prices eventually finishing the day with spring wheat down a penny and hard red winter wheat down two cents. Corn rallied a bit yesterday, led higher by new crop prices. Uncertainty about planting and late spring worries had corn on the rise and old crop cash prices were seven cents higher for the day. Soybeans struggled yesterday with ideas that US acres will be higher being the main reason for a shaky market. South American harvest progress also had soybean prices on edge and we saw old crop finish the day three cents lower. Canola prices started out the day higher but as the session progressed we saw futures turn lower and cash prices finished the day down 20 cents/cwt.
Today:
the overnight session was very quiet and it looks like things may continue to be that way until the USDA comes out with its pair of reports on Thursday. Wheat prices are slightly higher, beans are up about three cents and corn prices are giving up some of what they gained yesterday. Outside markets are mixed as the US dollar is higher and crude prices are about 80 cents/barrel higher as well. Uncertainty about the situation in Cyrprus and the impact on the European Union could keep overseas stock markets a bit shaky. Overall it looks to be pretty quiet over these next couple of sessions as the grain markets wait for Thursday.
Some support may be coming to the wheat markets from concerns about hard red winter wheat growing area weather. It's been pretty cold over the past couple of nights and now the market is wondering if any damage has been done to the crop. However, development is behind pace so damage, if any, will likely be limited. HRW crop condition ratings were quiet this week with Oklahoma conditions improving only slightly this week. The wheat markets, while they have seen good demand over the past couple weeks, are still looking for more. With Egypt stepping away from buying for the time being it could be tough to come buy more exciting news. Farmer selling has definitely picked up over the past couple weeks, which has been good to see. However, we could see prices begin to reflect that selling if it continues.
Soybeans are pretty confused and sticking very well to their current sideways trading range. US old crop supplies are tight, which should keep prices supported. On the other hand, South American supply is abundant and harvest progress looks to remain strong. Weather in Brazil and Argentina looks to remain favorable for progress and supplies will continue to move into the global marketplace. The market will likely continue to be weighed down by prospects for higher acreage estimates to be reported on Friday.
The corn market is having a tough time making up its mind. What was higher yesterday is lower today. Tight old crop supplies are expected to be reported in the USDA March one stocks report on Thursday. Also, a late spring means that we could be working with tight supply a bit longer than we had intended to. Weather in the corn belt has been a bit colder than average which has the market worried about planting progress. It's still very early, but the market always loves a good scare. New crop prices will be supported by planting concerns and ideas that acres will in all likelihood be lower than previously thought. In general, the market is expecting to see US acres at about 97 million this year.
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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