SunPrairie Grain Morning Comment
MINOT - Jan 22/14 - 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 0-5 cents, noncommercial buying interest due to oversold market conditions, little fundamental reason for bounce (Mpls March last trade 6.19, KC March 6.25 ¼)
Soybeans are mixed, front contract slightly lower but deferred contracts finding support after yesterday's sharp losses (March last trade 12.80 ¼)
Corn is up 0-2 cents, slowing movement/farmer selling gives prices a little bump, market optimistic about demand (March last trade 4.26 ¾)
Sunflowers are down 0-5 cents, bean oil is lower this morning, maybe playing catch up with lower soybean and soybean meal prices yesterday
Canola is 5-10 cents lower, futures sagging as selling interest pushes prices lower
The US dollar is lower this morning and crude prices are about 85 cents/barrel higher. The dollar is a bit lower on negative economic news out of the US. You can say that our "outside" markets are supportive for higher grain futures this morning. Wheat and corn futures are picking up the hint and trading a little higher but soybean prices, after finding some overnight support, have again faded into this morning's open.
Also supporting wheat prices are pretty strong feelings that futures are oversold and due for a correction. Some buying interest is going to have to come in to help correct for that...but the overall trend for wheat still seems lower due to abundant global supplies. Wheat futures really need to dig to find supportive news and about all we can come up with is cold temperatures and high winds in US winter wheat producing areas...however the poor weather is not expected to have a huge negative impact on the crop, it's pretty much the market just trying to find some favorable news.
The soybean futures cannot quite seem to make up their mind as to which direction they want to go today. Overnight trade was slightly higher, the morning session started lower and by the time I'm getting around to writing this futures have turned to about a penny higher. News for the soybean market is still largely negative as the market waits on a huge South American crop and anticipates Chinese demand to shift southward. There are some hopes that lower prices could result in increased demand. Recent price direction shows just how vulnerable the soybean market is to South American crop news. The market will probably continue to react negatively to any news about increased production out of Argentina and Brazil. Soybean meal is recovering this morning as well but soybean oil is working its way slightly lower.
Corn futures are just slightly higher this morning as the market finds some support from decreasing movement in the cash market as farmer selling has eased a little. Trade is also pretty thin for now which allows for futures to be bumped higher fairly easily if there is even only a small amount of buying interest. The market will keep its eye on South American production prospects as weather conditions remain favorable for good crop progress.
Kayla Burkhart
Broker/Procurement
SunPrairie Grain
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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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