SunPrairie Grain Morning Comment
MINOT - Mar 20/14 - 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 2-4 higher, lingering weather concerns limit selling pressure in wheat markets (Mpls May last trade 7.61 ¾, KC May 7.90 ¾)
Soybeans are up 3-18 cents, old crop up a lot more than new crop (May last trade 14.49 ¾)
Corn is 1-3 lower, followed wheat down in overnight session, can't quite recover as wheat turns higher (May last trade 4.85 ½)
Sunflowers are unchanged, bean oil movement is fairly quiet to start out today, higher soybeans could support
Canola is down 5-10 cents, futures are slightly lower this morning after trading higher yesterday, following bean oil and crude futures
After finishing the overnight session lower, wheat markets are working their way higher and may pull corn prices along for the ride as well. Soybean prices were higher in the overnight session and following suit at today's open as well. Bean oil, crude and canola futures are all lower this morning so we might not see higher oilseed prices this morning, with the exception of the soybean market. There is chatter about Europe putting sanctions on Russia as a result of its actions with Crimea. The US dollar is higher this morning.
Wheat surged higher yesterday due to concerns about US crop weather, particularly dryness in the hard red winter wheat belt. That dryness is forecast to continue, also, so we may see this weather support prices as we move forward as well. Export sales for the week were estimated to come in between 200-700 thousand metric MT(TMT) and were reported at 597 TMT. There is concern about Ukraine getting their crop seeded due to financing issues...however they're already reportedly over 30% seeded so I don't know how much of a problem financing will be. Wheat prices have climbed very high these past few weeks and we are seeing some very good pricing opportunities for old crop and new crop as well.
Soybeans shot higher in the overnight session and are continuing that strength as we work through today's session as well. Old crop prices are posting more significant gains than new crop prices, likely due to supply concerns. China is having a lot of problems with bird flu and that is hurting the poultry industry which is in turn slashing demand for soybean meal. Therefore, China has been cancelling some of its soybean purchases not only from the US but from South America as well. Weekly export sales thought they may see a net cancellation but they actually came in at the higher end of estimates at 639.7 TMT. Estimates ranged from 150-850 TMT.
There are thoughts that Chinese corn imports from the US could be lower than current estimates due to the rejection of the MIR162 trait. Corn futures are struggling this morning. Corn followed wheat lower in the overnight session but cannot seem to find strength with wheat prices as they have turned higher. Weekly export sales came in at the high end of estimates that ranged from 300-850 TMT at 745.8 TMT.
It looks to be a fairly choppy day for the markets. Hopefully wheat prices can hang onto the strength found at the beginning of the day and finish this session higher.
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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