SunPrairie Grain Morning Comment
MINOT - Oct 7/13 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:55 AM CDT:
Wheat is up 4-7 cents, global demand and tightening stocks have wheat prices rising again today (Mpls Dec last trade 7.52, KC Dec 7.57)
Soybeans are down 2-4 cents, harvest yields and higher than expected stocks continue to push soybeans lower (Nov last trade 12.91 ¼)
Corn is up 1-3 cents, rising with wheat prices but gains limited by falling soybean prices, harvest (Dec last trade 4.45 ¾)
Sunflowers are 0-5 cents lower, a falling soybean complex combined with weak demand has prices lower
Canola is 5-10 higher, buying interest after lower last week
The government shutdown enters its seven day and leaves a whole bunch of market uncertainty in its wake. The US dollar is lower, as are crude prices, as those markets just do not know what to do at the moment. Grains are mixed this morning in what is considered to be pretty uneventful trading. There's a lack of fresh agricultural data and that will continue as the USDA stays closed. It's looking more and more like the monthly USDA S&D report that was to be released Friday will be delayed.
Wheat prices are higher with tightened US stocks and a pickup in global demand. Also, talk about the Russian and Ukrainian 2014 crops continues to gain momentum. It's looking more and more like acres will be cut due to wet planting weather. Ideas are that Ukraine could produce as much as seven million metric MTless of wheat than what was produced last year due to the rainy weather. Additionally, harvest of the 2013 crop is moving along pretty slowly. A large Canadian crop, providing stiff export competition for the US, could limit gains as we move forward, though.
There is really little fresh news for the corn and soybean markets as they focus on harvest progress. Yields for both commodities continue to come in better than anticipated. Harvest was paused for corn this weekend due to rainy weather in many areas, but that looks to pick back up this week. The increase in soybean stocks adds weight to the market and we are again seeing lower prices to soybeans today. Thoughts that an decrease in Ukrainian wheat acres could lead to an increase in corn acres could be limiting corn gains this morning. The corn market is being pulled lower by soybeans and higher by wheat, which in the end is just making for pretty boring trade.
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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