SunPrairie Grain Morning Comment
MINOT - Feb 5/14 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:45 CDT:
Wheat is 3-5 lower, relaxing after strong gains yesterday (Mpls March last trade 6.19 ½, KC March 6.42 ¼)
Soybeans are down 2-4 cents, South American selling pressure, markets take a breather from gains (March last trade 13.10 ½)
Corn is 1-2 lower, producer selling of US corn is pretty strong, weighs on futures prices (March last trade 4.40)
Sunflowers are up 5-10 cents, bean oil up sharply this morning despite fall in soybean meal and soybeans
Canola is up 5-10 cents this morning, follow through strength from yesterday and stronger bean oil/crude prices support
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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
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There is a lack of fresh news for the grain markets to trade off of this morning and after a couple of higher sessions prices are working their way lower. For what it's worth the US dollar is higher this morning and crude is up over 40 cents/barrel. The market seems focused primarily on South American supplies and US logistics.
Concerns about the condition of the US hard red winter wheat crop were enough to push wheat prices sharply higher in yesterday's session. Hard red winter wheat finished over 20 cents higher and spring wheat was up over a dime, pushing local cash prices back up over six bucks. Major winter wheat producing states are experiencing some bitter cold temperatures again so there are concerns about additional crop damage. However, this time the cold temperatures were preceded by snowfall which not only provided insulation to the crop but much needed moisture as well. The market knows the winter wheat crop is resilient so it is hard to get too excited about crop damage until the crop breaks dormancy. StatsCan reported an increase in Canadian wheat stocks over last year.
Soybean futures are mildly lower this morning after performing pretty well over the past few sessions. South American harvest weather combined with lower soybean meal prices are enough to pull prices slightly lower. There has yet to be any confirmation of Chinese cancellations (rumors of purchases being switched from the US to Brazil hurt prices pretty badly last week) and that may be limiting some losses. Canada reported an increase in canola stocks over last year. The report seems to be having little, if any, impact on futures prices for now.
Brazilian dryness is good for soybean harvest progress but not so great for the corn that is being seeded right after. The newly planted corn crop is reportedly having a tough time emerging due to a lack of moisture. This makes many wonder about whether or not growers will continue to seed corn or not. A private market analyst decreased its estimate for South American corn production, which isn't really a surprise given prices. Demand for US corn has been pretty strong but producer selling has remained fairly steady as well.
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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