SunPrairie Grain Morning Comment
MINOT - Oct 8/13 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:15 AM CDT:
Wheat is up 4-6 cents, scattered global weather issues and good demand had the markets higher in the overnight session (Mpls Sept last trade 7.54 ¾, KC Sept 7.62)
Soybeans are 0-2 cents higher, China back from holiday, strong commercial demand (Nov last trade 12.98 ¾)
Corn is down 2-3 cents, Argentinean corn planting resuming, US private sector crop estimates keep increasing (Dec last trade 4.47)
Sunflowers are up 0-5 cents, bean oil was slightly higher in the overnight session, may bring sunflowers along
Canola is 10-15 cents higher, strong end user demand supports futures, harvest pressure in Western Canada limits gains
The USDA said that the October 11th S&D report will not be released Friday due to the government shutdown and a makeup date has not been set as of yet. Crude prices are higher this morning, as is the US dollar after both traded lower yesterday. The grain markets are lacking much fresh news to trade off of today, so we're sticking to the news that has been around over the past week or so which is weather, harvest and demand. Wheat and soybean futures are leading market direction and corn is simply happy to follow along.
Global wheat production concerns due to weather issues continue to dominate the wheat market right now. Ukrainian winter wheat seeding is behind last year at 50% complete as of yesterday. However, the weather is forecast to get better which will allow for progress to continue. Russian wheat export prices are on the rise as supplies are getting tight and want to be kept for domestic use. There are some thoughts that futures are becoming overbought, though, and that could keep gains limited.
Brazilian soybean planting is starting to really ramp up and acres are expected to increase from last year. The soybean market, though, is more focused on China being back from holiday. China has tight soymeal supplies right now, which worked to increase their soymeal prices and in turn could be lending some support to US markets. US commercial demand for soybeans is also pretty strong on the front end, keeping November futures supported over deferred contracts.
Argentinean corn planting is expected to resume as dryness had things slowing down. Planting is reportedly 30% complete but we could see that increase if soil moisture conditions improve. Acres that don't make it to corn can be expected to roll over to soybeans. Reports that China purchased some US corn is encouraging but it seems that the market is focusing on the potential for a large US crop instead of demand news. For now it looks like US corn will stick to its current, tight trading range.
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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