SunPrairie Grain Morning Comment
MINOT - Mar 6/14 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:50 AM CDT:
Wheat is -2 to +1, some concerns about US planting but prices mostly lower with Ukrainian tensions easing (Mpls May last trade 6.89 ¾, KC May 7.09 ¾)
Soybeans are 8-16 cents higher, old crop positing double digit gains on tight supply and strong demand, new crop following (May last trade 14.37 ¼)
Corn is up 3-6 cents, slowing producer selling, mixed news from Ukraine...market likely overanalyzing (May last trade 4.86 ¼)
Sunflowers are up 10-20 cents, bean oil rallying with soybeans this morning, higher meal and canola help
Canola is up 15-20 cents, board continues to find strong buying interest this week, pulls futures higher again
*CHS Harvest for Hunger*
We are in the midst of our annual Harvest for Hunger fundraiser which began the first and runs through the 20th of this month. Each dollar donated is equivalent to four meals and all contributions are given to our local food banks. Various SunPrairie Grain locations will be having fundraisers in the coming weeks. In Minot, we are having a Chili Feed on the 19th at the new office from noon - 2:00 pm. The Chili Feed will be a free will offering with all proceeds going to the campaign. If you have already donated we greatly appreciate your contribution and support. Every dollar donated makes a difference!
Grain markets are mixed again this morning with wheat struggling to trade higher and corn and soybeans seeing pretty decent gains again this morning. Export sales for the week were pretty good, indicating US soybean supplies could get tight as we wait for new crop. News from Ukraine is all over the place as the market eats up any shred of information it can get. Right now, Ukrainian farmer selling has reportedly relaxed due to unfavorable prices. Also, Ukraine could be in a pickle for financing this year's planting. In addition to political troubles Ukraine is also having some weather problems as dryness is impacting much of the crop producing areas. So it seems one thing after another for Ukraine at the moment. The US dollar is lower this morning and crude prices have turned higher.
There are some concerns about what the US and Ukraine may produce for wheat this year due to weather issues. As I mentioned above, Ukraine is having some dryness issues in areas which is already raising concerns about their planting season. In the US there is chatter about how deep the frost is and how that could delay spring planting in our area as well. The US weekly export sales were in line with estimates that ranged from 250-750 thousand metric MT(TMT) at 600.5 TMT.
Old crop soybean futures are rallying pretty substantially this morning on tight US supplies and continued export sales (despite recent cancellation confirmations). Also, global oilseed market strength has supported prices as well. Canola futures are rallying sharply higher this morning and bean oil is up as well. Long term, news that China is producing more to meet its increased commodity needs could weigh slightly on prices as that could mean our current demand forecasts for China are a bit aggressive. Also, another cancellation was announced yesterday. Export sales for the week came in at 1029.40 TMT, in line with estimates that ranged from 800-1300 TMT.
Producer selling on corn has been fairly steady lately as prices have been climbing. The market could find some weakness from a decreased weekly ethanol production report. However, export sales were much stronger than estimated. Weekly sales estimates ranged from 600-1000 TMT and were reported at 1682.50 TMT. The corn market will be keeping an eye on developments (both political and weather) in Ukraine as well as USDA 2014-15 supply and demand news.
Kayla Burkhart
Broker/Procurement
SunPrairie Grain
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1800 13th 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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