SunPrairie Grain Morning Comment
MINOT - May 21/13 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:15 AM CDT:
Wheat is down 7-10 cents, following pressure with corn market, higher US dollar (Mpls July last trade 8.03 ½, KC July 7.36)
Soybeans are down 2-8 cents, old crop tight supplies limit losses there but new crop losses are stronger on planting progress (July last trade 14.62 ½)
Corn is down 8-13 cents, old crop posting bigger losses than new crop as selling pressure hits the market (July last trade 6.36 ¼)
Sunflowers are down 0-5 cents, lower bean oil and crude has sunflowers slightly lower for now
Canola is down 10-15 cents, following soybeans after market was closed yesterday
Today:
I have an early appointment to get to so I'll just cover a few things quickly. The markets reopen in a few minutes but they finished the overnight session lower as it seems that US planting progress and general selling are pushing the markets lower. The US dollar is higher this morning and crude prices are about 40 cents/barrel lower. US planting progress was substantial over the past week and worries about delays should be eased, though the northwestern Midwest (aka ND and MN) remain wet and delays will continue around here.
The USDA put US spring wheat planting at 67% complete this week, a good jump from last week's 43% planted number. We're still behind the five year average of 76% planted but the market will likely become less concerned. North Dakota still remains a bit behind average at 50% done versus a five year average of 67% complete. It goes without saying that not a lot of progress will get made across much of ND this week. Barley planting also picked up steam and is reportedly 70% complete (77% five year and 55% last week). ND barley is behind at 33% planted versus a 64% average and 97% planted last year. In our area I think the barley number is much higher as that is what many of you have said you planted first and are finished, or close to finished, with. Due to the late planting start emergence is obviously behind on both barley and spring wheat. Winter wheat crop conditions dropped by 1% to 31% good to excellent. The crop is also now rated 41% poor to very poor compared to 39% of the crop in this rating last week.
Soybeans were on pace with what the market expected at 24% planted. Soybeans are behind the five year average of 42% planted but pretty good pace was made considering they were reported at only 6% planted last week. ND soybeans were as of Sunday evening 19% planted, compared to the 36% average. New crop futures are being pushed lower this morning with the progress but we'll have to see how much gets made this week and how far behind pace we remain. The whole soybean complex is lower this morning so we can look for lower oilseed prices in general for this morning.
The corn market is leading the way lower this morning, most likely due to general selling and planting progress. The USDA pegged US planting at 71% complete as of Sunday evening - the market was expecting to see 65-70% reported. Last week progress was at 28% done, this is the largest weekly jump in recorded history. It looks like the US is going to get its whopper corn crop in. Planting delay concerns will come to a halt for now as we're only 8% behind the average pace. This week not much will get done in ND and MN but how concerned will the market be? ND corn is 61% done, which is only 1% behind the five year average. We'll see what next week brings.
Short and sweet today. Grain futures look to be lower on USDA numbers, outside influences and general selling today.
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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