SunPrairie Grain Morning Comment
MINOT - Oct 24/13 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:35 AM CDT:
Wheat is 2-4 lower, little fresh news to report, market closed off highs yesterday and weak finish yesterday turns into lower trade today (Mpls Dec last trade 7.56 ¾, KC Dec 7.67)
Soybeans are down 1-3 cents, taking cue from lower corn and wheat markets, not much justification for a price retreat given high demand (Nov last trade 13.07 ½)
Corn is 2-4 lower, yields high, weaker tone in general for grain markets today
Sunflowers are 5-10 lower, soybean oil off with soybeans and grains in general
Canola is unchanged, futures board pretty quiet at the moment despite falling soybean prices
2014 Contracts
2014 Malt Barley and HO Sunflower contracts have been released. Malt barley is at $5.50/bushel today and we are offering tradition and pinnacle. The contract comes with an AOG and three cents/month storage beginning October 1, 2014. HO Sunflower contracts have three delivery periods (F/M, A/M and J/J), AOG of 1,250 lb/acre and flexible pricing. Contracts are going to be offered to those who had them last year first. If you are interested in a contract and did not have one last year please give us a call and we will see if we can get the extra bushels or acres to get you signed up! Thanks!
Yesterday's grain futures prices saw things start out a bit higher but those gains faded as the session progressed. The weaker finish has translated to lower prices in the overnight session and the beginning of the morning session today. The US dollar is lower this morning and crude prices continue to fall. The USDA released its export sales report for the week ended October 3rd. The information in the export sales report is pretty outdated and the USDA will catch up with export sales reports by the end of next week. Further harvest delays are expected as the extended forecast calls for continued wet weather to corn and soybean growing areas.
There is little fresh news for the wheat markets to trade off of and even an export sales report is doing little for prices. The USDA put sales for the week ended October 3rd at 653.6 thousand metric MT(TMT) which was in line with market expectations of 450-900 TMT. It should be noted that hard red winter wheat futures have worked their way higher than spring wheat futures. If prices stay that way we could see increased demand for low protein spring wheat to the milling and even export markets as buyers seek cheaper alternatives.
The soybean market is trying to trade higher today but seems to be limited by falling wheat and corn prices. Export sales for the week ended October 3rd were in line with expectations of 850-1150 TMT at 947.8 TMT. Thoughts that sluggish South American logistics could bring global soybean demand to the US are encouraged by a recent purchase of US beans made by Russia. Hopefully the demand continues and prices can stay supported.
Corn prices are a little lower this morning but trade seems to be pretty well balanced lately. On the one hand, demand in the corn market is pretty strong. There is potential for feed demand to increase (due to a potential increase in livestock production) as the price of corn has decreased. Also, ethanol margins are sitting pretty good right now which will keep corn for ethanol demand high. On the other hand, though, US production is going to be huge and the USDA has yet to increase its corn production estimate. Export sales for the week ended October 3rd were much higher than estimated (450-850 TMT) at 1341.4 TMT.
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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