SunPrairie Grain Morning Comment
MINOT - Jul 3/13 - 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 7-10 cents, strong global demand has futures encouraged, higher row crops also spur wheat markets (Mpls Sept last trade 7.78 ½, KC Sept 6.99 ½)
Soybeans are 10-13 higher, South American logistical issues combined with tight old crop stocks push futures higher (Nov last trade 12.53 ¾)
Corn is 1-3 higher, a little bit of buying interest in front of the holiday has futures quietly higher (Dec last trade 5.05 ½)
Sunflowers are 0-5 higher, bean oil up with the soybean market today will help sunflower prices
Canola is unchanged to slightly higher, futures following soybean complex
Delayed Pricing
SunPrairie Grain will offer free DP on spring wheat and winter wheat 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.
Fourth of July Holiday - SunPrairie Grain will be closed July 4th and 5th for Independence Day. Markets close at noon on the 3rd and reopen the morning of the 5th. There will not be a morning grain update those days.
Yesterday:
Sorry there was not an update yesterday as I had an early appointment. Just as well though as there was not a whole lot to talk about as the markets were pretty quiet due to a lack of fresh news to drive prices. The market seems to be slowly accepting what the USDA said regarding acres last week and getting over the shock that corn acres will not be resurveyed. Corn prices finished the day up two cents, climbing back higher after spending some of the day in negative territory. Soybeans were down a penny on the day as futures struggled with little news to guide direction. The wheat markets saw cash prices unchanged yesterday despite some global demand news that hit the markets.
Today:
We're seeing more positive price action than I would have expected ahead of tomorrow's holiday. Futures close at noon today and reopen Friday morning at 8:30. However, many in the marketplace will likely be taking an extended holiday so Friday's trade will probably be fairly quiet and today's price action will likely be reflective of trade we typically see ahead of a long weekend. Outside markets are pretty favorable for higher grain prices this morning with the US dollar lower and crude prices up nearly two dollars/barrel at the moment. Buying interest seems to have been spurred in the grain futures as well, lifting prices. Informa Economics releases its US and global production estimates this morning at 10:30.
Winter wheat harvest was reported at 43% complete this week which was a pretty considerable jump in progress for the week. Reports of poor yields in western Kansas continue to be offset by reports of high yields in central Kansas. Global wheat demand seems to have kicked up a notch this week with Egypt buying wheat for the first time since February and China buying some wheat as well. China bought some US wheat but Egypt did not as prices were too high. However, Egypt buying wheat right now means that they are likely back in the market after taking a bit of a break saying stocks were adequate to meet needs. Other than that there isn't a whole lot of fresh news for wheat prices today. I'm guessing we'll look to row crops for direction more than anything as we head into the holiday.
South American soybean logistical issues continue and may help provide some support to the US futures markets. There are reports of a strike in Argentina, this time I believe it's the truckers. The USDA put soybeans at 96% planted in the US so I'm pretty curious as to what the resurvey of acres will reveal. The market is anticipating the new acreage number as well but we're going to have to wait awhile. The USDA is not going to release the information until August 12th as the month of July will be used to collect new information. Canola prices are climbing higher with the soybean complex and crude after seeing fairly quiet trade so far this week.
The corn market seems to be trading higher on what can be described only as "bargain buying" as there is little other reason for futures to be climbing higher. December corn futures are barely hanging above the support mark of $5. December corn futures did dip below five dollars yesterday but managed to work their way back higher. If futures stayed below five dollars for long we would probably see some additional selling pressure kick in as this has been a key support level to the December contract for awhile. China came in and bought some new crop US corn as prices must have finally gotten cheap enough to entice some demand.
All in all it looks to be a fairly quiet day in front of the Fourth of July holiday. Happy Independence Day!
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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