SunPrairie Grain Morning Comment
MINOT - Jun 28/13 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:45 AM CDT:
Wheat is up 0-3 cents, winter wheat markets reluctantly trade higher due to harvest pressure, spring wheat doing ok (Mpls Sept last trade 7.84 ½, KC Sept 7.02 ¼)
Soybeans are mixed to mostly lower, old crop supported by tight supplies but new crop lower with mostly favorable crop weather (Nov last trade 12.73 ¾)
Corn is down 2-6 cents, favorable US growing conditions, markets quiet in front of USDA reports to be released early this morning (Sept last trade 5.70 ¼)
Sunflowers are unchanged/higher, bean oil slightly stronger this morning with rising crude, falling soybeans will limit gains though
Canola is down 10-20 cents, market just keeps on getting sold off, trying to find a comfortable trading range
Check out our new and improved website! www.sunprairiegrain.com
Delayed Pricing
SunPrairie Grain will offer free DP on spring wheat and winter wheat beginning July 1st through July 31st. DP will remain at 5 cents a month for corn and soybeans and 15 cents a month for sunflowers through July 31st. As always, DP is dependent on space available.
SunPrairie Grain Dynamic Pricing Platform (DPP) Incentive
DPP is offering an exciting incentive to those who sign up for their mobile app between July 1st-7th. Everyone who signs up for the app will be automatically entered to win a GoPro Silver edition. If you were like me and had not heard of a GoPro until now - here's a link http://gopro.com. What can you do with the DPP mobile app, you ask? You can see SunPrairie Grain's cash bids for futures traded commodities, futures quotes and even place offers to sell grain all from your phone! The app also offers market commentary and news. Those who have the app have had nothing but great things to say about it so far. Simply download the DPP app from the app store to get signed up. If you have questions please do not hesitate to call.
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!
Phew. I think my announcements section just officially got longer than my commentary.
Yesterday:
Markets were fairly quiet with two sided trade most of the day yesterday and eventually finished with most grains lower for the day. Corn prices were down a couple of cents and soybeans a penny. Old crop soybeans were higher on tight supplies but our bids are over the November contract so that did not do much to help us out. Sunflowers and canola were lower yesterday with falling soybean oil. Spring wheat and hard winter wheat both finished the day four cents lower. Spring wheat was due to a basis change and hard red winter wheat was due to a futures loss spurred from hedge pressure.
Today:
Grain trade is really quiet in front of the long anticipated USDA reports that will be released at 11 AM. According to one source, the past 12 out of 14 years have seen "wild" swings in the grain markets after the release of these reports. We could be in for a crazy day today if there are any surprises and my guess is the trade will really be watching corn numbers closely. For what it's worth the US dollar is higher and crude prices are working their way from higher to unchanged and I'm assuming eventually lower. Oh, yep, crude just went down to 10 cents/barrel lower while I wrote that last sentence. News from China stating that it will make sure its financial markets continue to run smoothly despite some recent bumps in the road could help to ease concerns about Chinese demand. We'll see.
Japan said that it is looking for alternate sources of wheat for its confectionary flour milling due to the recent GMO scare in the US. This is reportedly the first time in over 50 years that Japan has sought non-US wheat for its confectionary flour. Some in Japan do not think that the ban will last long as US western white wheat has proven to be the best for baking and finding an alternate source with adequate baking characteristics could be difficult. Harvest pressure continues in the Kansas City hard red winter wheat market as yields are better than expected as harvest moves north. Basis values for winter wheat are starting to come under pressure as supplies pick up.
Soybeans are now posting double digit losses ahead of today's reports. It seems that some must be expecting the news from the USDA to be unfavorable for beans today and are working that mentality into today's pricing. New crop really has a tough time trading higher as weather for the newly planted crop is considered to be mostly favorable. The canola market is lower again this morning as it seems that futures are all too eager to trade lower recently. Where is that market's bottom?
As soft red winter wheat harvest ramps up in areas we're seeing more wheat move into feed rations, replacing more expensive corn. Additionally, I'm hearing that Argentina's corn basis is dropping which is making it more affordable to bring Argentinean corn into US feed lots than buying US corn. Growing conditions are good for the US corn crop as well which is only adding weight to today's price action. Currently corn futures are down about a nickel across the board.
As I mentioned above, trade will be pretty quiet today in front of the pair of USDA reports that will be released later this morning. After that, it's anybody's guess as to which way this market will go but we could be in for a crazy day if history is any indication.
Have a great weekend and I hope you're able to enjoy some of this beautiful weather that we're finally having!
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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