SunPrairie Grain Morning Comment
MINOT - Feb 27/14 - 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:
Wheat is down 6-8 cents, Argentina issued additional export licenses, market is worried about recent demand for US wheat (Mpls May last trade 6.48, KC May 6.71 ½)
Soybeans are 7-21 higher, old crop contracts are shooting higher, new crop following, market breaks through resistance level and buying pulls prices up (May last trade 14.18)
Corn is down 2-4 cents, little fresh news, market continues to focus on crop prospects (May last trade 4.58 ¾)
Sunflowers are unchanged, bean oil is fairly quiet this morning despite the rallies in soybean oil and soybeans
Canola is up 15-20 cents, with soybeans canola finds buying interest
I am sorry there was not a morning email yesterday but I was in Lignite for a meeting. I'm back and ready to roll this morning, not really reporting any exciting news for the grain markets this morning. Corn and wheat prices are struggling while soybeans are posting double digit gains almost across the board. The US dollar is lower this morning after finding some strength overnight from positive US economic data that was released. Crude futures are down about 70 cents and falling. A winter storm is expected over areas of the Midwest this weekend which could further snarl logistics.
News that Argentina has issued additional wheat export licenses combined with thoughts that Egypt will pass on US wheat in its most recent tender may be enough to keep wheat prices in the red this morning. There are concerns about recent US demand and uneventful weekly export sales could be adding to that sentiment. Export sales for the week were reported at 564.9 thousand metric MT(TMT), in line with estimates that ranged from 150-750 TMT. There is little else occurring for wheat prices this morning. Eyes will be kept on the winter wheat crop and any potential production problems...however winter wheat news will be focused on much more heavily come time for the crop to break dormancy.
Soybeans have pushed through resistance levels (the current levels that futures prices reach, and then back off of). Once they broke through those levels, buying interest popped up and keeps pushing prices higher. Currently may futures are up 28 cents. Now we just have to wonder how long the buying interest will last and keep those futures prices supported. The same goes for soybean meal prices which keep shooting their way higher as well. Export sales for the week were in line with estimates that ranged from 400-850 TMT at 642.9 TMT. Canola and bean oil are both a little higher, pulling other oilseed prices higher as well.
There is not really anything to report as far as fresh news goes for the corn market. Prices continue to focus on USDA projections for 2014-15 and the huge forecast increase in ending stocks. I personally feel that the USDA is pretty aggressive on the yield estimate of 165 bushels per acre for this year but the USDA does not much care what I think. Export sales for the week were just below the top end of estimates that ranged from 400-850 TMT at 842.3 TMT.
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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