SunPrairie Grain Morning Comment
MINOT - Oct 28/13 - 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 cents lower, taking cue from lower corn and soybean markets as there's little fresh news otherwise (Mpls Dec last trade 7.44 ¼, KC Dec 7.56 ½)
Soybeans are down 17-20 cents, harvest pressure and November futures have a hard time staying above that $13 mark (Nov last trade 12.83 ¾)
Corn is 4-6 cents lower, harvest yields continue to come in much better than expected, good progress made over weekend (Dec last trade 4.35)
Sunflowers are unchanged, bean oil hanging on right now, despite falling soybeans, sunflowers not impacted at the moment
Canola prices are 10-15 cents lower, falling with soybeans
2014 Contracts
2014 Malt Barley and HO Sunflower contracts have been released. Malt barley is at $5.40/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!
Upcoming Minot office move!
The time has come! Our Minot SunPrairie Grain and Dakota Agronomy Partners offices will be moving to our new location at 1800 13th street SE (just north of Krolls Diner). Monday, November 4th through Wednesday, November 6th the SunPrairie Grain Main and Seed Plant numbers (852.1429 and 852.5608, respectively) and Dakota Agronomy Partners main line (852.3567) will each be routed to a mobile line so we can move our phone equipment to our new office. If you call and get a busy signal, please try again or call the cell phone of the person you are trying to reach. We appreciate your patience during the move and know you will find having everyone under one roof much more convenient!
There is not much fresh, fundamental news for the grain markets again this morning. So prices are falling pretty heavily with the harvest hedge pressure from the weekend. It is thought that substantial harvest progress was made over the weekend as weather was cooperative for harvest in most areas of the US. Harvest delays are expected again for the middle of the week as rains are forecast for areas to the east of us. The US dollar is higher this morning and crude prices are down about 15 cents/barrel.
Reports that Egypt will be making a wheat purchase this week may be part of what is keeping wheat prices from seeing the losses that the corn and soybean markets are experiencing. A lack of harvest pressure for the wheat markets probably has something to do with it, too. Demand looks to be pretty steady for now, also lending support to prices. The USDA is expected to peg US winter wheat seeding at 86% complete in this afternoon's weekly crop progress report. Falling corn prices will limit wheat gains as those two grains are substitutes for one another in the feed market.
Soybean harvest is expected to be reported at 74-77% complete in this afternoon's USDA crop progress report. As I mentioned above, it's pretty tough for November soybean futures to stick above that $13 mark and it seems that prices retreat shortly after closing above there. Soybean oil is hanging onto its prices, just below unchanged, so that indicates that other oilseeds should do ok today. Canola futures are slightly lower this morning, taking cue from the falling soybean complex.
Corn futures are under pressure this morning as harvest yields continue to come in much better than expected. Farmer selling continues to be pretty light, though, so that could be limiting some losses. The USDA is expected to report US harvest anywhere from 48-50% complete in this afternoon's report. Demand looks to remain fairly strong in both the feed and ethanol markets. There is little else happening fundamentally in the corn market.
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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