SunPrairie Grain Morning Comment
MINOT - Apr 3/14 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:45 AM CDT:
Wheat is 5-7 higher, rebound after pretty significant losses earlier this week (Mpls May last trade 7.28, KC May 7.45)
Soybeans are up 4-12 cents, old crop again leads way higher due to tight supplies, new crop simply follows along (May last trade 14.75)
Corn is 3-5 higher, following wheat and beans, buying interest continues (May last trade 5.00 ½)
Sunflowers are 10-20 higher, bean oil rallies with canola, beans and meal
Canola is up 20-30 cents, old crop works its way higher which is surprising considering stocks and strong farmer selling
The US dollar is higher again this morning and crude prices are struggling again, down about 20 cents/barrel. Grain futures are higher this morning, seemingly staging a recovery after yesterday's losses. Statistics Canada will release its planting intentions April 24th and we can expect lots of canola, spring wheat and flax acres for our neighbors up north. Weekly export sales were pretty good which may be adding some support to prices. There is really little fresh news for prices to trade off of again this morning.
Wheat is seeing a little bit of a corrective bounce which is probably due considering the week we've had. Weather concerns could provide some underlying support as we trade through the spring and the market will be paying very close attention to the condition of the US hard red winter wheat crop. Weekly export sales came in above estimates that ranged from 100-400 thousand metric MT(TMT) at 646.90 TMT. As long as buying support holds, look for today to finish a little stronger.
Commercial buying interest in light trade volume is enough to pull soybean prices higher again this morning. Weekly export sales were expected to show net cancellations for soybeans but instead came out at 85.5 TMT. That being said, decent demand is also probably providing a little support to the soybean market this morning. Along with corn, the soybean market is probably overbought and due a correction but prices just keep on climbing higher. Canola prices are doing pretty well this morning also despite strong farmer selling and an abundance of Canadian supply. Perhaps snarled logistics are helping to keep prices elevated.
As I said above, corn futures are feeling overbought and at some point there will be a selloff in corn futures, I just don't know when that might be. Commercial buying interest in the corn market is giving no indication of waning for now. Weekly export sales estimates ranged between 500-1400 TMT and sales came in at 998.5 TMT.
Kayla Burkhart
Broker/Procurement
SunPrairie
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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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