SunPrairie Grain Morning Comment
MINOT - Sep 2/14 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:55 AM CDT 09.02.2014:
Wheat is down 6 to +1, futures slide on US harvest progress, Ukrainian fears factored into prices for now (Mpls Dec last trade 6.26 ¼, KC Dec 6.39 ¾)
Soybeans are 8-10 higher, Chinese futures are on the rise so US futures are following suit (Nov last trade 10.33 ¾)
Corn is 0-2 higher, some global demand news around, likely following higher bean prices more than anything (Dec last trade 3.66 ½)
Sunflowers are up 0-5 cents, soybean oil futures rising with meal and soybean prices, pulling sunflowers along for the ride
Canola is up 10-15 cents, market continues to correct higher as thoughts futures are/were oversold are the main driver
There really is not a lot of fresh fundamental news for the grain futures markets this morning. Corn and soybeans are working their way higher while wheat prices are struggling to maintain any gains. Overnight trade was fairly quiet. The markets are still concerned about the goings on in the Black Sea Region but it seems that those concerns are factored into prices for now. Some cooler weather in the forecast for growing areas could provide some support but there is not major concern regarding frost at this point in time. Crude prices are sharply lower this morning on demand concerns and the US dollar is higher.
Wheat prices are being driven by harvest progress more than anything else this morning. Sure, it's been raining and stalling progress but the market does not seem to be focused on that for now. We saw about 200,000 bushels come in before it started raining this weekend. Protein just barely makes 14% on average and VOM was mostly under 1.5 with only a couple tests coming back at higher levels than we'd like to see. Falling numbers have not been a problem yet, either. Hopefully these recent rains do not impact quality too much.
Chinese soybean futures are shooting higher which are working to pull US soybean futures higher. However, prices are off their overnight highs as it will be tough to justify higher trade with yield estimates expected to get bigger and lower wheat and corn prices. Canola futures are higher this morning but also fading off their overnight highs as we trade through the morning session.
Some global demand news worked to boost corn futures early but by now they've turned lower. I didn't hear of any US business getting done in everything that was going on globally and with lower wheat prices there is not a whole lot of reason for corn to trade higher. Additionally, growing conditions remain mostly favorable and you have to really scratch for news to try and find something to push prices higher right now.
Kayla Burkhart
Broker/Procurement
CHS SunPrairie
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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