SunPrairie Grain Morning Comment
MINOT - Apr 10/13 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:30 AM CDT:
Wheat is mixed, looks like we might trade a bit higher today, continuing optimism from yesterday's confirmation of Chinese demand (Mpls May last trade 8.00, KC May 7.45 ½)
Soybeans are 1-3 lower, Chinese demand concerns keep the market weak, slightly falling off after yesterday (May last trade 13.80)
Corn is up 3-5 cents, corn takes its spot back in feed rations, US planting delays...we're in a weather market (May last trade 6.38 ½)
Sunflowers are unchanged, bean oil is quiet so far this morning, will look to soybeans for direction, crude has turned from higher to lower
Canola is down 5-10 cents, futures relax with soybean complex, little other fresh news
*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.
Today:
Outside markets are a mixed bag today as the US dollar is lower...but so are crude prices. When I came in earlier this morning crude was slightly higher but futures have now worked their way to about a dime/barrel lower. Grain markets are also mixed this morning with wheat futures being the most confused. Spring wheat opened back up at 8:30 this morning higher but in six minutes has turned to slightly lower trade. Kansas City and Chicago wheat futures are a bit lower at the moment. Soybeans are mixed with May futures higher and the rest of the futures contracts a bit lower. Corn futures are showing old crop gaining at a premium to new crop. The USDA releases its monthly S&D report tomorrow which could be part of the reason for the confusion in the grain markets today as trade is fairly cautious and positions are being evened ahead of the report.
Wheat futures rallied pretty heavily yesterday on confirmations of Chinese demand which got the market pretty excited. Winter wheat crop conditions improved 2% to 36% good to excellent in this week's USDA crop progress and conditions report. There are concerns about how recent cold temperatures are impacting the hard red winter wheat crop as some areas are seeing lows into the 20s. Selling has pretty much shut off since the March 28th USDA report and I think it's going to take some pretty strong movement to get producers excited about prices again.
Soybeans are extremely concerned about Chinese demand as news of the bird flu scare spreads. How will the decrease in poultry numbers impact soymeal and soybean demand? Also, I'm hearing some reports that we may see a slowdown in crushing facilities, which would only add weight to the market. Soybeans are also burdened by thoughts that a late start to the planting season could mean less corn and more soybean acres...however it's a bit early for that kind of talk. South American supplies are also taking a toll on things. Flax prices are remaining strong and steady as offers out of Canada are keeping prices elevated and the crush needs the supply. There is little activity in the flax export market at the moment so demand is pretty much coming solely from the crush side.
Corn futures are higher again this morning after posting gains of four cents in yesterday's session. Price strength could be limited by export demand as things still remain fairly quiet on that front. The corn market is going to be keeping a close eye on US weather as cool, wet conditions are delaying progress in many areas. However, as I said above, it's a bit early in most areas to be getting too worked up. However, when in a weather market, we tend to get worked up pretty easily.
Short and sweet today - off to a career fair!
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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