SunPrairie Grain Morning Comment
MINOT - Jan 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 up 2-5 cents, oversold market, excited about Saudi Arabian purchase of North American wheat (Mpls March last trade 6.15 ¼, KC March 6.33 ¼)
Soybeans are up 1-5 cents, market wants to try to find strength but could struggle to do so as Brazilian harvest has started (March last trade 12.89 ¾)
Corn is up 0-2 cents, demand pretty good, keeps futures supported
Sunflowers are down 0-5 cents, soybean oil struggling despite higher soybean and soybean meal futures
Canola is up 0-5 cents, market quiet, looking to soybeans/crude for direction
The grain futures markets are pretty quiet this morning and sticking to fairly narrow trading ranges. There is a lack of fresh, fundamental news to push prices one way or the other. Cold weather across many US areas will limit grain movement over these next few days and that will also keep things pretty quiet around the elevator. The US dollar is slightly higher this morning and crude prices are up about 15 cents/barrel at the moment.
Wheat futures are putting in a pretty good mini-rally at the moment with spring wheat up nearly four cents and both winter wheat markets up about six cents. Slight concerns about winterkill are providing some support to prices. News that Saudi Arabia purchased some North American (hopefully US) origin wheat also has futures a little excited. The fact that wheat futures are oversold may also be lending some support. Some negative news for prices are reports that India increased its wheat acreage this year, meaning that there will be more competition in the global export marketplace.
Soybean futures are having a tough time hanging onto early gains. The nearby March contract is higher (about five cents) as old crop US supplies are tight. However, gains are limited or nonexistent as futures contract months are pushed out. The May contract is up only two cents and July is up a fraction of a penny. South American harvest of what looks to be a huge crop is coming and that is why soybeans are on edge. Brazilian harvest has reportedly already begun (less than 5% complete) and Brazilian soybeans are a heck of a lot cheaper than US. Could this result in buyers switching their purchases from the US to Brazil? This keeps the market nervous and I would not expect soybean prices to trade significantly higher as US beans begin to compete heavily with South American.
Corn futures are slightly higher this morning as the market is optimistic about demand, which has been pretty steady. Overall things are pretty dang quiet for the corn market at the moment. US corn is competitively priced in the global marketplace for now and stronger wheat/soybean prices also help support futures.
Stay warm!
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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