SunPrairie Grain Morning Comment
MINOT - Mar 28/14 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:45 AM CDT:
Wheat is down 11-13 cents, profit taking before Monday's big USDA reports have wheat futures lower today (Mpls May last trade 7.42 ¼, KC May 7.71 ¾)
Soybeans are -3 to +1, old crop gains on tight supplies, new crop falters (May last trade is 14.37 ½)
Corn is unchanged, new crop futures slightly higher, old crop lower, market choppy before Monday (May last trade 4.91)
Sunflowers are unchanged, soybean oil is slightly higher this morning but not enough to impact sunflower prices at the moment
Canola is unchanged, futures are a little lower this morning but changes to cash prices are insignificant
*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!
Grain futures are anticipating Monday's USDA reports and trading cautiously in front of the release of them. Wheat futures are experiencing a lot of profit taking while corn and soybeans are chopping around both sides of unchanged. After Monday's planting intentions and quarterly stocks reports are released the markets will begin to focus on weather which should bring us plenty of volatility and excitement as we analyze every forecast. Uncertainty in the Black Sea Region may provide some underlying support but really seems to be doing little to grain markets at this point.
Wheat futures are much lower this morning as profit taking hits the market. As you recall, wheat prices gained on Black Sea Region uncertainty and investors running to invest in something tangible. Well, it's only natural they would want to sell off at a higher price the wheat futures they bought, right? That's what I mean by "profit taking" it's those in the market making money on their positions in the grain markets. So we've enjoyed the higher prices they've given us, but they also need to make money and that's part of the reason for lower prices recently. Black Sea Region troubles could provide some support but it seems that Ukraine has had no problem exporting grain so far.
Old crop soybean prices are higher this morning as the market worries about US supplies. It's becoming evident that either we need to slow down on exports of old crop soybeans or we import from elsewhere to get our needs covered and keep stocks somewhat comfortable. The market, though, is confident that we'll have soybeans by new crop and that is likely the reason for lower new crop prices...we're not as concerned about the supply crunch in November as we are about the supply crunch in April. Canola and soybean oil futures are fairly quiet this morning and I think that overall it's going to be an uneventful day for the oilseed markets.
Corn futures are quietly higher this morning. Some support could be coming from a recent purchase of US corn from Egypt. Egypt typically goes to the BSR for its grain needs...so it is somewhat notable to have Egypt come to the US. Could this be a sign of BSR export troubles? The market is speculating so, that is for sure. Argentinean corn crop estimates are higher than current USDA estimates, according to a recent release from Argentina. The USDA could revise their estimate higher which could be burdensome for prices if there is increased global supply. The corn market will be very closely watching what the USDA has to say Monday about new crop as current projections have 2014-15 carryout nearing two billion bushels.
Wheat prices will struggle today but I anticipate that it will be fairly quiet in the wheat and soybean markets. The real excitement will come Monday at about 11:05 AM.
Have a great weekend!
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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