SunPrairie Grain Morning Comment
MINOT - Feb 3/14 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
[cid:image001.jpg@01CD002F.571BB930]
Market Outlook as of 8:35 AM CDT:
Wheat is mixed, Chicago slightly higher with KC and Minneapolis lower, global supplies weigh on futures (Mpls March last trade 6.03 ½, KC March 6.14)
Soybeans are up 5-7 cents, technical buying, South America keeps limit on gains (March last trade 12.85)
Corn is 2-4 higher, export demand for US corn is strong, however on-farm supplies are abundant (March last trade 4.37 ¼)
Sunflowers are down 5-10 cents, bean oil faltering this morning despite the strength in the soybean market
Canola is down 0-5 cents, futures slightly lower with drop in crude, bean oil
*Upcoming Grain Marketing Seminars*
February 4th - Introduction to Futures, Hedging and Basis, Ryder Senior Center, 12:00 lunch, 12:30 Meeting
February 11th and 14th - Introduction to Options Trade, Minot Office, 12:30 lunch, 1:00 Meeting
February 25th - Introduction to Options Trade, Ryder Senior Center, 12:00 lunch, 12:30 meeting
February 26th - Introduction to Futures, Hedging and Basis, Lignite, 8:00 AM
*If you don't see a location near you do not fear - there are more to come!
With the exception of soybeans, which seem to be the exception quite often lately, grain futures trade is fairly quiet and sticking to narrow ranges. Soybeans are posting double digit gains this morning while corn and wheat futures are quiet followers. Soybean oil and canola futures are both lower this morning. The US dollar is lower and crude prices have worked their way only slightly higher as the morning has progressed. Fresh news is fairly scarce again this morning. China is on holiday for the Lunar New Year all week.
Spillover strength from the corn and soybean markets are helping to pull wheat prices higher this morning. After starting out fairly slowly spring wheat prices are higher, up about three cents. It seems that this could be some noncommercial buying interest more than anything. Global demand remains fairly strong, but so does competition for that demand. The European Union looks to export some more and we still have that big Canadian crop that needs to move as well. Speaking of Canada, StatsCan will release a report tomorrow morning that the spring wheat traders will be closely watching. Cold temperatures are forecast to return to winter wheat areas and there is talk of dryness to some other spots as well which could create some support for the winter wheat market. However, we will have to wait until this spring until damage can be assessed.
As I mentioned above, China is on holiday this week so any further rumors/confirmations of switching purchases from the US to Brazil will have to wait. That being said, soybeans are given a breather and trading higher this morning. Brazilian harvest is reportedly 10% complete and yields are "very good". New crop soybean shipments from Brazil to China began last week - will logistics be able to remain fluid and keep up with demand? Even with South American harvest, though, US export demand remains strong and US old crop supplies are tight. Canola prices are faltering this morning and soybean oil is struggling too. This could mean lower sunflower, flax and canola prices today if futures do not recover.
Technical support spurred by higher soybean prices is pushing corn futures higher this morning. Additionally, export demand for US corn remains fairly steady and that keeps things trading higher as well. However, the market needs to keep in mind that there are plenty of on farm corn supplies that have yet to be marketed. The US is anticipating a large carryout number for corn this year, which will take the market some time to chew through.
Kayla Burkhart
Broker/Procurement
SunPrairie Grain
[image003.jpg]
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
DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express or an implied promise, guarantee or implication by or from the author(s) that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. or its staff or its management.
Only active subscribers can read all of this article.
If you are a subscriber, please log into the website.
If you are not a subscriber, click here to subscribe to this edition of the STAT website and to learn more about becoming a subscriber.
