SunPrairie Grain Morning Comment
MINOT - Jun 17/13 - 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 2-5 cents, winter wheat harvest and general technical weakness push futures lower (Mpls Sept last trade 8.01 ½, KC Sept 7.13 ½)
Soybeans are 13-17 lower, ideas good planting progress was made over the weekend and will be made this week (Nov last trade 12.80)
Corn is down 2-4 cents, thoughts crop conditions will improve in today's USDA crop progress/conditions report puts pressure on futures (July last trade 6.56)
Sunflowers are unchanged, bean oil movement is really quiet today despite the fall in soybean futures, sunflowers don't look to do much otdya
Canola is 15-20 cents lower, market continues its downward spiral, falling soybeans do not help
*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!
Friday:
Grain futures were mixed on Friday with old crop corn and soybean futures finding strength but most everything else traded lower. Old crop corn was higher with tight stocks and slow farmer selling, which worked to push prices 12 cents higher. Old crop prices were lower, though. Soybeans saw November futures fall a couple of cents as favorable weather forecasts formed for the weekend. Wheat prices fell pretty hard on Friday. Part of the reason was the roll in futures combined with a lower day in the futures market. Spring wheat futures lost nearly a dime Friday, which added weight with the roll from the July to September contract. Spring wheat prices were down 22 cents for the day and hard red winter wheat was off 38 cents.
Today:
Grain futures are mixed this morning. Wheat prices were lower only a few minutes ago but now have worked their way to just above unchanged. Corn futures have old crop higher and new crop down about a penny. Soybeans are really getting hit hard this morning, posting double digit losses at the moment. Canola futures are falling with the drop in the soybean market as there is little else to guide price direction. Weather forecasts look to turn warm and dry which will aid in the final soybean planting effort and help dry out some wet areas. For what it's worth the US dollar is slightly higher and crude prices are up about 35 cents/barrel.
Winter wheat harvest, which is expected to be reported at anywhere from 15-25% complete in this afternoon's USDA crop progress report, is pressuring futures prices. However, things have turned higher this morning as it seems we may have found some buying interest to spike prices a little today. Questionable export demand for US wheat also works to keep a lid on prices. Asian buyers are still cautious about US wheat due to the GMO issue. Large global production prospects also weigh on wheat futures as well. Spring wheat planting in Saskatchewan could help eliminate some of the planting concerns in the US. Also, North Dakota is expected to see progress at 82% complete in this afternoon's report so the market may become more comfortable with North Dakota's acres.
The northwest corn belt reportedly made some decent progress on soybean planting over the weekend as conditions last week finally dried out enough for progress to be made. US soybean planting is expected to be reported at 85-90% done which may help eliminate concerns about the delayed planting season, pretty similar to what we saw happen with corn this year. With planting becoming less of a concern the market will now focus on crop conditions, which is good timing since the first soybean conditions will be reported this afternoon. Canola futures are falling with soybeans today but bean oil is managing to hang onto higher prices.
Corn crop conditions are expected to improve by 2-3% this week which would put ratings at about 65% good to excellent. The potential for an increase in crop condition ratings has the futures market on edge. Old crop corn futures, though, are higher as farmer selling continues to be slow and supplies are tight. South Korea has continued to be a pretty regular purchaser of corn, but just not of US corn, citing high prices. It looks like South Korea may start sourcing out of the Black Sea region as South American logistics are still bogging things down. Also hurting corn futures is the fund liquidation of their long positions. Funds are selling out of their corn futures contracts which is working to push prices lower.
There will not be a morning grain update tomorrow as I have an early appointment.
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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