SunPrairie Grain Morning Comment
MINOT - May 21/14 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:35 AM CDT:
Wheat is up 2-5 cents, slight recovery, not much fundamental reason for prices to trade higher (Mpls July last trade 7.43 ¼, KC July 7.70 ¼)
Soybeans are up 5-7 cents, market focuses on whether old crop supplies are enough to make it to new crop harvest (July last trade 14.75 ¾)
Corn is down 1 to up 1, strong planting progress expected this week, market is confident a good crop is coming (July last trade 4.73 ¾)
Sunflowers are down 0-5, taking cue from a sharply lower canola futures market
Canola is down 20-30 cents, futures are seeing strong selling pressure today - perhaps spurred by planting progress
There is not a whole lot of exciting news again this morning for the grain futures markets. In general, weather forecasts across the US look pretty good for planting and crop development. Even globally there are few crop weather concerns. Futures trade was fairly quiet in the overnight session and this morning's trade action is no exception so far.
Spring wheat planting progress is expected to see a good jump this week as we catch a break on crumby weather for about a week, however planting will no doubt continue to be behind average pace. There are some rains called for the US hard red winter wheat growing areas which will help what crop is left. Globally wheat crops are looking pretty good. There is a little bit of concern about hot weather impacting yield in the Black Sea Region. Europe is expected to have a big soft wheat crop this year and their spring wheat is reportedly doing pretty well. Some noteworthy news out of the PNW is that two small counties in Oregon put a ban on the production of GMO crops.
Soybean prices are higher again this morning as the market continues to focus on old crop supplies and whether there are enough to carry us to harvest. That being said...Brazilian farmer selling is pretty strong and we continue to have shipments of soybeans originating from Brazil coming to the US. Argentinean harvest is being hung up by crumby weather which is limiting selling pressure from that country, though. Soybean crush margins have reportedly been a bit tight as prices rise which could limit crush demand until new crop supplies hit the marketplace. Canola prices are being sold off pretty heavily this morning which is putting downward pressure on soybean oil and sunflower prices as well.
The corn market is remaining focused on planting progress and weather forecasts. Temperatures are expected to warm up from a chilly spring which will aid in crop development. Also, it looks like the remaining crop is going to get seeded. However, there are problems in North Dakota which has resulted in one of our senators working to get the May 25th corn crop insurance date pushed back.
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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