SunPrairie Grain Morning Comment
MINOT - Mar 27/14 - 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 lower, profit taking continues as there's a lack of fresh news to push prices higher (Mpls May last trade 7.43, KC May 7.67 ½)
Soybeans are -1 to +1, tight old crop supplies should support futures, market could be relaxing after recent gains (May last trade 14.39 ¼)
Corn is up 1-2 cents, strong export sales providing some support against falling wheat and soybean markets (May last trade 4.87)
Sunflowers are 5-10 lower, soybean oil is falling this morning, along with canola, keeping sunflowers from finding gains today
Canola is down 5-10 cents, futures off with soybeans, soybean oil
*CHS SunPrairie Harvest for Hunger Results*
A big THANK YOU to every one of you that helped to make this year's Harvest for Hunger campaign a success. As a whole, CHS SunPrairie raised a total of $20,419 with our Bowbells location bringing in a whopping $10,927 of its own. Each dollar is equivalent to four meals and all proceeds will be given to local food banks. This is by far CHS SunPrairie's most successful Harvest for Hunger yet and we appreciate your support!
Wheat futures are sluggish again this morning but corn and soybean futures are managing to hang onto very slight gains...with soybeans bouncing around both sides of unchanged. The overnight session was fairly quiet last night and it looks like we could have the same type of day session today. Weekly export sales are having little to no influence on price it seems this morning, despite the corn sales being almost double the high end of estimates. These grain futures seem to be waiting for Monday's USDA quarterly stocks and prospective plantings reports and we could see fairly quiet trade before those are released. Canadian law now mandates rail performance of its railroads...what kind of impact will this have on US rail performance?
Egypt is reportedly cutting back on its wheat imports as it makes its wheat handling and storage more efficient, cutting down on waste. Egypt is also planning to buy more domestic wheat, therefore needing fewer imports. Wheat futures are falling this morning with continued profit taking that started in yesterday's session. Also, there was some moisture to the hard red winter wheat belt but southern areas are still needing moisture that the eastern areas are receiving. Weekly export sales came in ahead of estimates that ranged from 300-625 thousand metric MT(TMT) at 728.5 TMT.
Despite quite tight US soybean stocks, futures are falling today after experiencing pretty strong gains recently. US old crop supplies of soybeans have gotten so tight that we will either need to have export sale cancellations or import soybeans from elsewhere to keep supplies at comfortable levels. Perhaps the US will source some soybeans from Brazil, which has its crop about 70% harvested. The USDA is expected to put US soybean acres at 81.162 million, which is higher than baseline estimates previously released. Estimates for US soybean acres range from 78.5-83.6 million. Weekly export sales were expecting to see net cancellations of about 175 TMT but sales came in at a positive 546.8 TMT, with new crop sales being pretty strong. Old crop sales were dismal, perhaps reflecting some of those cancellations the market was expecting to see. Soybean oil and canola are lower this morning so it could be a fairly uneventful day for the oilseed markets.
Corn futures are still in the green this morning, likely finding strength from very strong export sales. Weekly export sale estimates ranged from 500-750 TMT and were reported at 1436.70 TMT, which is close to double the top end of estimates. Outside markets as well as wheat and soybean price action could all be the reason we're not seeing corn prices trade a whole lot higher this morning, despite the good export sales report. Lower wheat and soybeans combined with a higher US dollar could be negatively impacting things..but you'd think stronger crude prices would lend a helping hand.
Look for it to be a fairly quiet next couple of days in the grain markets as positions are evened up before Monday's USDA reports.
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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