SunPrairie Grain Morning Comment
MINOT - Oct 9/13 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:30 AM CDT:
Wheat is 1-3 cents lower, some profit taking seems to be occurring after recent gains, a lack of fresh news to push prices higher also adds pressure (Mpls Dec last trade 7.52 ½, KC Dec 7.58)
Soybeans are down 2-5 cents, harvest pressure and yields keep prices lower (Nov last trade 12.85)
Corn is 0-1 higher, falling wheat and soybeans make it tough for corn to trade higher, some buying interest in futures after recent price declines (Dec last trade 4.42 ½)
Sunflowers are up 0-5 cents, bean oil slightly higher but probably not enough to change sunflower prices by much
Canola is 10-15 cents higher, commercial buying interest elevates futures prices
It has been a fairly quiet session so far for the grain markets. A lack of fresh news to guide direction has prices trading the same news that has been around for awhile now. Additionally, silence from the USDA keeps things limited. There are hopes for a short term agreement that will end the government shutdown (temporarily, of course) so budget talks can resume. The news has the US dollar higher this morning, which could be in turn adding weight to the commodity markets as they have little else to trade off of. Crude prices are down over a dollar/barrel but still hanging well above the $100/barrel mark.
Wheat prices are down this morning as it seems a bit of profit taking has hit the markets. Makes sense as futures seemed to be getting a tad bit overbought. Pressure from a falling soybean market and a higher US dollar do not help things out much either. Support could come from strong export demand and Black Sea Region production concerns. There are thoughts that we could see a temporary reduction of exports out of the Black Sea due to production concerns from excessive rainfall. However, exports for the year out of Russia and Ukraine exceed those of last year.
Soybeans are about a dime lower at the moment as harvest pressure and yields continue to weigh on prices. Soybean meal is sharply lower as well this morning but soybean oil is still hanging onto higher prices. Brazilian planting progress is pretty well on pace and is really just starting up. Canola gains have backed off pretty substantially, probably finding pressure from falling soybean prices.
The corn market seemed to be finding some buying interest after recent losses. However, with falling wheat and soybean prices it's difficult for corn to maintain those gains. The corn belt is forecast to stay pretty dry through the weekend which should allow for good harvest progress. High yields and harvest pressure will also keep corn prices on edge. An estimate of a reduction to Argentinean corn acres surfaced yesterday, but the reduction was not major. Brazilian planting seems to be going well as it is over 50% complete and acres are expected to be quite high.
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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