SunPrairie Grain Morning Comment
MINOT - Mar 18/14 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:25 AM CDT:
Wheat is 3-5 higher, a flurry of fresh news, the biggest being sharp reductions in winter wheat crop ratings (Mpls May last trade 7.28, KC May 7.47 ¼)
Soybeans are up 6-13 cents, old crop sharply higher on demand hopes (May last trade 14.05)
Corn is 1-3 higher, South Korea bought US corn (May last trade 4.81 ½)
Sunflowers are unchanged, bean oil movement fairly quiet, may turn higher with stronger soybean and soybean meal prices
Canola is unchanged, futures board uneventful so far this morning, look for support from crude and soybean complex
*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 locations will be having fundraisers in the coming weeks. In Minot, we are having a Chili Feed and Bake Sale 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!
It looks like grain markets want to gain back some of what was lost yesterday, especially wheat prices. There is not a whole lot of fresh news for the markets this morning so it seems more of a corrective bounce than anything. The US dollar is higher on an absence of fresh unrest in Crimea and favorable US economic data. Crude prices are marginally higher this morning as well.
The wheat market suddenly has lots to talk about and it all seems like pretty price favorable news. The biggest excitement is the huge drop in hard red winter wheat crop ratings. In Kansas ratings dropped from 37% to 34% good to excellent with 20% of the crop rated poor to very poor. In Oklahoma 37% of the crop is rated poor to very poor and good to excellent ratings dropped from 24% to 18%. Texas saw g/e ratings drop by 15% to only 13% g/e with over half the crop (52%) rated poor to very poor. Needless to say there is some reason for wheat prices to trade higher this morning. Weather conditions look to remain fairly unfavorable in the southern plains as hot, dry weather is forecast. Globally there seems to be a lot of wheat business around and Egypt is looking for some as well. Ukraine is already 24% seeded so if there are problems with financing this year's crop...when will they surface?
There was yet another decline in a private Brazilian soybean crop estimate recently released. That could be lending some support to soybean prices this morning but I think the market knows that either way Brazil is going to have a lot of soybeans produced this year. Old crop futures are climbing on favorable demand news and ideas that US supplies are tight and will stay that way as we move forward. There is little else to report for the oilseeds today.
Corn futures are slightly higher this morning after losing about seven cents yesterday. South Korea bought some corn from US and South America, indicating that there is still some demand around for US corn. It seems that corn is more of a follower than a leader today, looking for the wheat and soybean futures markets for direction more than anything.
Kayla Burkhart
Broker/Procurement
SunPrairie
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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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