SunPrairie Grain Morning Comment
MINOT - Apr 18/13 - 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 0-3 cents, spring wheat struggles a little but winter wheat markets are a few cents higher on weather concerns (Mpls July last trade 7.99 ½, KC July 7.51)
Soybeans are up 12-15 cents, tight old crop supplies and chatter about unfavorable weather to Chinese growing regions (July last trade 13.96)
Corn is 0-2 higher, old crop market mixed with demand concerns but new crop slightly higher as US acreage losses expected (July last trade 6.42 ¼)
Sunflowers are up 5-10 cents, bean oil rising this morning with soybeans and crude finally catches a break and trades higher as well
Canola is up 15-25 cents, futures rallying heavily this morning following soybeans, soybean oil and crude
*Minot Main Scheduled Maintenance Closure*
The Minot Main location will be closed for dumping beginning April 29th through May 10th for maintenance. The office will be open during this time. Thank you and please call if you have any questions!
*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 futures performed pretty decently yesterday but cash prices saw some losses as bids were rolled from May to July futures. Soybeans saw the biggest losses yesterday as the market is heavily inverted from May to July and basis values did not correct enough to make up for the loss. Cash prices were down 41 cents for the day for soybeans, pushing them back below $13/bushel. Cash corn prices were 13 cents lower as that market is inverted as well from May to July futures. Corn lost 13 cents for the day but prices are still floating above six bucks. Flax and canola prices struggled yesterday but sunflowers were higher. Spring wheat lost 12 cents with the futures roll but hard red winter wheat is at a carry and with no change in basis values cash prices were up six cents for the day.
Today:
An explosion at a fertilizer plant in the small town of West, Texas has killed 5-15+ and injured 150+ while destroying and/or damaging the nearby neighborhood including the school, retirement home, apartments and homes. When something like this happens the whole industry feels it, our thoughts are in Texas today. Grain markets are mostly higher this morning and it seems that prices have climbed a few cents since I began writing just a few minutes ago. Outside markets are favorable with the US dollar lower and crude prices catching a break, trading 73 cents/barrel higher. I'm sure some buying has hit the crude markets after futures fell through $86/barrel.
Wheat markets are climbing higher this morning and I think strong export sales could be the biggest reason with some weather concerns also adding a bit of support. Export sales for the week were phenomenal at 1.67 million metric MT The market was expecting to see sales reported at 200-450 thousand metric MT(TMT) so this was quite the surprise. The bulk of the sales were for the next marketing year, which isn't a surprise considering it starts June 1. There are rains forecast for some of the hard red winter wheat growing areas and I'm hearing some reports of a frost this week becoming less likely. However, the market will be keeping an eye on the hard red winter wheat weather as temperatures are still quite chilly. I'm also hearing that Russian planting has started earlier than normal due to good planting conditions, which may work to put some price pressure on the markets.
New crop soybean futures are posting about half the gains that old crop futures are as the market is pretty well convinced that more US acres are going to switch from corn to soybeans. Additionally, tight old crop US supplies keep old crop prices pretty excited right now. China is reportedly seeing some unfavorable crop weather as well which may work its way into the markets as we move forward also. Export sales for the week were in line with estimates that ranged from 400-700 TMT and came in at 566.8 TMT. Sales weren't terrible but they are also not anything to get too excited about, either. Canola prices took a pretty hard hit yesterday as bids rolled. Futures are sharply higher this morning and we should hopefully recover some of the losses today.
The corn market is trying to chop its way higher right now but is having a tough time doing so. Old corp prices are up a couple cents but new crop is struggling, which is the opposite of what was happening just a few short minutes ago. Cool, wet weather conditions are persisting across much of the corn belt which is making it look like not a whole lot of planting progress was made over this past week. Old crop prices may have a tough time justifying higher trade considering demand issues. Weekly ethanol production numbers came in lower than what the market was estimating and export demand is not really anything to get excited about either. Sales for the week came in at 417.2 TMT, in line with estimates that ranged from 250-500 TMT.
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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