SunPrairie Grain Morning Comment
MINOT - Apr 30/13 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:10 AM CDT:
Wheat is 4-6 cents lower, high global supplies keep buying interest limited despite issues in the US wheat producing areas (Mpls July last trade 8.13 ¼, KC July 7.69 ¼)
Soybeans are up 5-7 cents, buying interest spurred from higher corn futures, strong domestic demand (July last trade 14.15 ¼)
Corn is 0-3 higher, slower than expected planting progress reported yesterday by the USDA (July last trade 6.59 ¾)
Sunflowers are unchanged, bean oil futures are quiet this morning, overall tone for sunflowers feels lower with limited demand, though
Canola is up 0-5 cents, futures are quiet this morning, look to soybeans for direction, lower crude prices don't help
*Minot Main Scheduled Maintenance Closure*
The Minot Main location will be closed for dumping 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.
Today:
It's going to be a pretty quick wire this morning as I have an early appointment to get to. Prices were higher yesterday as weather forecasts turned less favorable for planting as they called for more cool, wet weather across many major US growing areas. Strong buying interest likely also supported prices. Corn was up 40 cents for the day, beans 27, spring wheat 15 and hard red winter wheat 24. Canola was higher but other oilseeds finished the day unchanged. Today the US dollar is a bit higher and crude prices are off about 30 cents/barrel. Grain futures are mixed with the corn and soybean markets stronger and wheat prices faltering. More precipitation is expected to the Midwest, further delaying the 2013 planting effort.
Wheat seems to be ignoring news from the USDA. First off - hard red winter wheat conditions fell 2% in the good to excellent category to 33%, this is compared to 64% g/e last year. The poor to very poor rating increased by 2% to 24% p/vp. The HRW crop tour begins today and is expected to find a frost damaged crop. The market will be paying close attention to results out of the tour as it has been waiting for confirmation of frost damage and firsthand knowledge of just how hard the crop has been hit. Spring wheat planting is running behind, no surprise, at 12% complete (up from 7% last week). Average pace for spring wheat planting is 37% and last year we were far ahead of schedule at 70% complete. Someone in North Dakota has been making progress as ND spring wheat was reported at 2% complete as of Sunday evening (compared to a 27% average). Barley is reportedly 30% planted, just behind the average of 37% complete. ND barley is 0% planted, behind the average of 20% complete. Buying interest is limited in the wheat markets this morning as global supplies are being focused on a bit more than US crop issues at the moment.
Soybeans will see their first planting progress report in next week's USDA crop progress/conditions report, we can expect to see that number behind average pace as well I believe. Domestic demand has been enough to keep prices lifted in the soybean market this morning, even after yesterday's decent uptick. Concerns about Chinese demand and increased US acres remain but for now it seems that soybeans are happy to trade higher and also to bring other oilseeds along for the ride.
The planting progress number for corn really disappointed and that shows with today's futures being a bit higher. The market was expecting to see planting progress jump to 8-12% complete, up from 4% last week. Instead we saw progress go to a whopping 5% complete as of Sunday evening. This is well behind the average of 31% complete at this time and last year's 49% complete. North Carolina, Tennessee and Texas are the only states whose progress is not lagging well behind average pace. Emergence is also, not surprisingly, behind at 2% emerged versus a 6% average. Today corn futures have expanded limits after finishing limit high (40 cents) in yesterday's session. With as quiet as trade is this morning, though, it does not look like we'll be using those expanded limits.
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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