SunPrairie Grain Morning Comment
MINOT - Jun 12/13 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:40 AM CDT:
Wheat is down 1-3 cents, taking cue from struggling row crops, quiet in front of USDA S&D report (Mpls July last trade 8.14 ¾, KC July 7.29)
Soybeans are mixed with old crop higher and new crop down 5-10, not many changes expected in today's USDA report, new crop planting progress pressures prices (Nov last trade 13.18)
Corn is 2-5 lower, following soybeans, trade quiet (July last trade 6.60)
Sunflowers are up 5-10 cents, bean oil slightly higher this morning with old crop soybeans and crude prices
Canola is unchanged, futures are struggling a little but so far losses are not much of a concern
*Minot Main Scheduled Maintenance Closure*
The Minot Main facility will be closed for dumping July 1st-3rd for scheduled maintenance. Offices and the Minot East and West facilities will be open during this time. Thank you for your cooperation!
*AOG Contracts*
If you have an Act of God contract with us and are/were unable to get your crop seeded, please let us know as soon as possible. Also, just a reminder, we need a copy of your FSA 578 forms on seeded and PP acres when they're available for all AOG contracts (HO Sunflowers, Victory Canola, commodity canola, flax and NuSuns). If you have any questions please let us know. Thank you!
Yesterday:
Grain trade started the day out choppy and confused but as the session progressed things started to work their way higher. Soybeans were up eight cents on the day as traders got their positions squared away before the release of the USDA S&D report. Canola prices recovered pretty well after hefty, recent losses and cash prices were up 40 cents by the end of the day. Birdfood sunflower prices were stronger as demand in that market remains pretty firm for the time being. Corn futures took cue from a rising soybean market and finished the day nine cents higher with little fresh news to guide prices. Wheat reluctantly followed the row crops with spring wheat and hard red winter wheat finishing up four cents for the day.
Today:
It's a fairly quiet start for grain futures today but that's expected considering the USDA does not release its monthly S&D report until 11 AM. In front of that, it's going to be a fairly uneventful start to the day. Corn prices are a few cents lower, as are the wheat futures. Soybeans are mixed with old crop showing some strength but new crop off about a dime. Soybean oil is higher while canola futures are a bit lower. Outside markets are favorable as the US dollar has just turned lower and crude prices are about 65 cents/barrel higher at the moment.
There really is not a whole lot to say for grain news this morning as the market is so fixated on what the USDA is going to say later this morning. There is not a whole lot expected to change for old crop wheat numbers. New crop values could see a reduction in hard red winter wheat production estimates and spring wheat acres. However, in order for US production concerns to have much of an impact on prices we'd also need to see big changes to the global balance sheet. I wouldn't really expect that to happen, either, as global production prospects look pretty good. In fact, Australia just increased its production estimates due to recent rainfall.
New crop soybean prices are having a tough time hanging on this morning and I think that a lot of the weakness can be credited to new crop planting progress. However, Minnesota and Wisconsin look to be getting some big rains today that would further delay planting progress in those states. We'll just have to see but for now markets don't seem too concerned. Not many changes are expected for soybeans in today's USDA report for old or new crop values.
The corn market is wondering whether or not the USDA will cut US acreage estimates in today's report. It's not very often that the USDA changes acreage estimates in the June S&D report as the US acreage report is due out at the end of the month. If acreage estimate changes are made the market is expecting to see the USDA put them at 95.8 million. Yield is expected to come in at 158 bushels per acre. This puts total production at over 15 billion bushels. If acreage estimates are left unchanged the market will likely shrug it off, knowing that changes will be coming later this month. Other than that there isn't much to report for corn news this morning.
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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