SunPrairie Grain Morning Comment
MINOT - Apr 7/14 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:40 AM CDT:
Wheat is up 2-6 cents, winter wheat conditions expected to decline again in this week's report (Mpls May last trade 7.24, KC May 7.39 ¾)
Soybeans are mixed, old crop slightly higher but new crop lower, good export sales versus strong acreage intentions (July last trade 14.55 ½)
Corn is 1-3 lower, markets drift lower on a lack of fresh news (May last trade 4.99)
Sunflowers are down 5-10 cents, bean oil falters, falls with crude and general selling pressure
Canola is up 5-10 cents, may turn lower with all of the pressure from the falling crude and soybean markets
The US dollar is lower this morning as it trades off of the disappointing employment report that was released on Friday. Crude is off about 40 cents/barrel as well, which may be adding some weakness to grain futures. A general lack of fresh, favorable news has things drifting lower as well. Ukrainian/Russian drama continues as Russia has seized government buildings in another area of Ukraine and declared it (the city) independent. A vote will likely come soon on whether the city wants to secede from Ukraine. This comes after Russia increased the price of natural gas to Ukraine by over 80% - Ukraine is bracing for the natural gas to be shut off. This afternoon the USDA will release the first crop progress report of the season, not much is expected to be reported given the late spring.
Western European wheat is reportedly ahead of schedule. However, dryness in the area could hurt the crop. The US continues to struggle with poor hard red winter wheat conditions as they are expected to decline again this week. Wheat futures are higher today, pushing off downward pressure that could be coming from the corn and soybean markets.
Brazilian beans made it to the US as some are importing due to tight US supplies and high prices. The news is not impacting markets horribly to the negative as US export sales are still pretty good. Canola futures are higher despite falling soybeans, soybean oil and crude futures.
The corn market, as with the wheat and soybean markets, is struggling due to a lack of fresh news. There is little reason for prices to climb higher at the moment, so with that prices are simply drifting lower. Planting delays are the only talk of the marketplace right now and it seems just a little bit early to get too excited about that.
It is really difficult to find anything new or exciting to talk about with the grain markets. The markets are so completely focused on the weather and there is little else happening at the moment. Keep an eye on the Black Sea Region but other than that, things are quiet.
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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