SunPrairie Grain Morning Comment
MINOT - Apr 29/13 - 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 up 4-6 cents, following strength in the corn market as there is little else to trade off of (Mpls July last trade 8.10 ¼, KC July 7.56 ¾)
Soybeans are mixed, old crop higher as it's tough to source nearby beans, new crop under pressure with ideas US acres will increase (July last trade 13.82 ¾)
Corn is up 15-20 cents, worries about US planting take the forefront as forecasts for later this week are cool and wet (July last trade 6.35)
Sunflowers are 0-5 lower, soybeans were weaker for a bit and are off their highs, seems like soybean oil is having a tough time getting higher
Canola is off 10-15 cents, weakening soybean complex keeps canola futures on edge
*Minot Main Scheduled Maintenance Closure*
The Minot Main location will be closed for dumping beginning today, 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.
Friday:
Grains were a bit mixed on Friday as corn and wheat futures were lower but soybeans managed to wrangle their way higher. Talk of fieldwork and optimism about progress over the next week had corn futures on edge Friday, finishing the day a nickel lower. Wheat followed the weakness in corn futures and were also subject to a bit of profit taking after the strong Thursday rally. The market started to wonder whether maybe recent rains to dry areas had offset some of the yield loss incurred by frost damage. Spring wheat was down four cents for the day and hard red winter wheat was down 11 cents. Soybeans saw prices climb higher as slow farmer movement combined with tight old crop supplies were enough to give prices and boost, finishing the day up nine cents. It was a quiet day for all other grains as prices were unchanged for the day on everything else.
Today:
It's looking to be a pretty good day as grain futures are mixed to mostly higher this morning. The US dollar is lower this morning and crude futures are a bit higher as well, which may also be providing some light support to grain prices this morning. This afternoon's weekly crop progress report is not expected to show much in the way of corn planting progress but could help to set the tone for tomorrow's trading session. There is little fresh, fundamental news to guide prices today and it looks like our grain markets are going to focus on weather concerns as we move forward.
Spring finally decided to make an appearance in North Dakota over the weekend and hopefully this favorable weather continues so we can start to make some progress of our own. There is little fresh news for the wheat markets this morning and today it seems that prices are again looking to the corn market for direction. Concerns about the state of the US hard red winter wheat crop are around which may be lending some support to prices as well. The HRW tour starts tomorrow which will help provide some insight as to what this crop is really looking like. Some negative market news is that we can probably expect to see export competition from the Black Sea region pick up in the coming months as their production from this year is thought to be higher than estimated and prospects for a big crop this year look good as well.
There is really not much to talk about when it comes to the soybean market today. Prices are well off of their overnight highs and soybeans are having a tough time deciding which way they want to go at the moment as we've been back and forth on the futures board pretty heavily this morning. Thoughts are that new crop acres will increase as the US corn crop gets off to a late planting start. The market is also wondering just how badly the Chinese bird flu is going to impact demand for US soybeans in the short term. Chinese import estimates have already decreased as a result of the bird flu.
Planting delays are definitely taking more of a center stage in the corn market this morning as cool and wet weather forecasts work their way back for near term weather in areas of the corn belt. Long term forecasts remain warm and dry but the market was hoping for good progress to be made this week which could be further stalled by the changes in the weather pattern. The market is expecting to see progress at 8-12% complete in this afternoon's weekly USDA progress/conditions report. However, I think expecting anything over 10% complete seems aggressive.
Not much going on today but we're happy to see so much snow melt in our area over the 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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