SunPrairie Grain Morning Comment
MINOT - Apr 5/13 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:45 AM CDT:
Wheat is up 1-2 cents, lower US dollar, quiet markets (Mpls May last trade 7.87 ½, KC May 7.22 ½)
Soybeans are down 8-11 cents, concerns about Chinese demand, ideas US acres could rise (May last trade 13.61)
Corn is 0-4 cents higher, old crop recovering a little after recent losses, ideas futures are oversold (May last trade 6.34)
Sunflowers are unchanged, bean oil fairly quiet today so far but falling soybeans and crude prices will not help
Canola is unchanged to a nickel higher, futures seem to want to rally but a weak soybean complex is not supportive
*Delayed Price Program*
SunPrairie Grain is offering free DP until July 31st, 2013 on spring wheat and winter wheat delivered by April 30th. 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 weaker yesterday as liquidation continued and overall things were unfavorable. The US dollar was sharply higher which only added weight to grain futures. The wheat market saw a very disappointing export sales report yesterday which weighed on prices. Additionally, forecasts for favorable weather to US growing areas had prices on edge. Spring wheat finished the day a nickel lower and hard red winter wheat was down 14 cents for the day. Corn was a big loser as well yesterday, posting losses of 11 cents/bushel by the end of the day. Liquidation just wanted to continue in the corn market yesterday, so it did. Soybeans were also lower yesterday but found some support to lift prices off their lows and cash prices were eight cents/bushel lower at the close. Sunflowers were down a dime for the day but canola was hard hit, losing 40 cents/cwt by the close.
Today:
It looks like we're going to end the week with grain markets a bit mixed as trade is fairly light and choppy so far. Soybeans are leading the way lower but corn and wheat are chopping their way higher. Outside markets are mixed with the US dollar lower and crude prices nearly a dollar/barrel lower at the moment too. There is little fresh news for the grain markets this morning so we continue to focus on planting weather and US stocks. New trading hours start Sunday night...so when I get to work Monday morning futures will not be trading right away. The simplicity of seamless 21 hour trading was not liked by many, so now we have more breaks and shortened trading hours to work with. There will not be an update Monday morning as I will be at a marketing club.
Wheat prices are being supported by rumors of a sale to China, but that rumor is for Soft Red Winter wheat and has yet to be confirmed. Wheat basis values are staying strong as they were on the verge of crumbling. The break in the futures market came just after the beginning of the break in basis. Selling was pretty strong and basis values were crumbling, but selling came to a screeching halt with the drop in the futures market which has kept basis values from falling off too much. News is pretty scarce otherwise today and it looks to be a pretty light, quiet day for the futures market today.
Soybeans are struggling again this morning. Reports of China killing off poultry in an attempt to stop the spread of bird flu could significantly impact their feed demand, which could in turn impact their soybean demand. Also hurting soybeans today are ideas that the US could see more soybean acres as corn prices have fallen off so substantially. Right now cash corn prices are well below $4.50/bushel and don't look to get a whole lot better, which could persuade some growers to switch to soybeans. So soybean prices are struggling this morning again.
There are ideas that old crop corn contracts are oversold, which is working to push old crop futures up five cents/bushel. So some buying interest has spiked up in the old crop corn contracts this morning. New crop contrasts are about a penny lower at the moment. South American harvest could be working against prices as Argentina is about 25% done at the moment.
Have a great 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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