SunPrairie Grain Morning Comment
MINOT - Apr 19/13 - 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 down 0-4 cents, Minneapolis showing strength, KC struggles as markets pull back (Mpls July last trade 8.01 ¾, KC July 7.46)
Soybeans are on nearby contracts with deferred down 3-5 cents, not much news, talk of Chinese purchase yesterday (July last trade 13.92 ½)
Corn is 3-5 higher, recovering after yesterday's heavy liquidation, lack of US planting progress (July last trade 6.32 ½)
Sunflowers are 0-5 lower, bean oil falling with soybeans, crude could limit losses
Canola is 10-15 cents higher, futures board rallies pretty well again today
*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 markets were fairly mixed yesterday with the corn market showing double digit losses but soybeans showing gains of nearly the same amount. Strong liquidation seemed to be enough to push corn futures lower and prices finished the day down 11 cents. Soybeans were a dime higher on good export sales and a lack of farmer selling keeping pipeline supplies tight. Sunflowers were a nickel higher yesterday and canola climbed as well. Spring wheat was up four cents for the day and hard red winter wheat was up two cents. Big wheat exports as sales to China were reported contributed to the gains.
Today:
Grain markets are mixed again this morning. Corn futures are slightly higher as they recover a little from yesterday's losses. Soybeans are seeing July futures higher but the balance lower. Soybean oil is lower this morning but meal is higher with strong demand and supplies being tight to produce it. Spring wheat futures are mostly higher but winter wheat futures are posting losses this morning. Outside markets are favorable with the US dollar trading lower and crude futures are up about a dime a barrel at the moment. Crude prices are still sitting below $88/barrel at the moment though. There is not a whole lot of fresh news for the grain markets this morning and I'm thinking it's going to be a pretty quiet finish to the week.
I'm hearing rumors of Egypt looking to buy wheat from Russia while simultaneously taking a loan, from Russia, to pay for the wheat. We'll see how that plays out. Old crop spring wheat futures are just above unchanged at the moment with some pressure hitting new crop. Almost all winter wheat futures are posting losses right now. The US wheat markets have seen pretty good demand this week but that seems to be doing little in the way of supporting futures today. Even a lower US dollar isn't resulting in gains today.
Old crop soybean futures are showing gains of about a nickel right now while new crop are sitting at about unchanged. Tight US old crop supplies are enough to keep prices in those futures months excited but new crop continues to dread the addition of US acres as corn planting progress stalls. There were reports late yesterday of China making a purchase of US soybeans which could also be adding some strength to US futures this morning. Canola futures are again posting a good rally this morning, likely following the strong soybean and soybean meal markets. Soybean meal is climbing with strong demand and a lack of soybeans to satisfy that demand. Soybean oil is lower this morning but I'm thinking with higher crude and soybeans that momentum could be short lived today.
Corn futures fell off pretty substantially yesterday. It seems part of that had to do with the closure of the Mississippi river and thoughts that corn movement will slow even further. Remember a few months back when news headlines were full of old ships being found in the Mississippi due to falling river levels? And barges were stuck since there was no water to run through the river? Well, the opposite is the case now. The Miss river is expected to reach flood stage this weekend and that has resulted in closures beginning today. Funny how things can change so drastically in just a few short months. Argentine harvest is progressing quite well at about 25% complete. Farmer selling is reportedly pretty strong. A lack of US planting progress will continue to weigh on things into next week. The market is hoping to see a 4% jump in progress, to 6% complete as of Sunday evening reported on Monday afternoon. I'm not sure if that much progress was made in the US over the week but we'll have to wait and see what the USDA says.
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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