SunPrairie Grain Morning Comment
MINOT - Apr 10/14 - 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 3-7 lower, found some early support on drier US forecasts, turning lower on increased ending stocks (Mpls May last trade 7.09 ¾, KC May 7.28 ½)
Soybeans are down 4-9 cents, Chinese economic concerns and default on soybean imports (July last trade 14.68 ¾)
Corn is 3-5 lower, market continues to digest yesterday's report , cut to ending stocks doesn't help (July last trade 5.05)
Sunflowers are down 5-10 cents, following bean oil, canola and crude prices
Canola is down 30-40 cents, strong selling pressure after lots of buying interest over the past couple weeks pushes prices lower
The markets are weak this morning as profit taking seems to be hitting prices fairly hard. Wheat and corn continue to fall, spurred by yesterday's losses. Soybeans are giving back some of what they gained after lower stocks reported yesterday drove prices higher. Canola is experiencing a major setback this morning as it looks like some of the buying interest in the futures market is being sold off. The weekly export sales report did not offer any exciting news for prices. The US dollar is higher this morning and crude prices are down about 33 cents/barrel at the moment.
Wheat futures saw an increase in ending stocks in yesterday's report. US stocks increased from 558 million bushels estimated last month to 583 millbu estimated yesterday. That puts our stocks to use at a pretty comfortable number of 24%. Weekly export sales were slightly above the top end of estimates that ranged from 150-375 thousand metric MT(TMT), coming in at 390.9 TMT. Profit taking spurred by the reports is pushing prices lower this morning and even drier US weather forecasts cannot seem to help prices trade higher.
Profit taking combined with some unfavorable news about the Chinese economy is working to push soybeans a little lower this morning. Chinese importers have reportedly defaulted on a few shipments as crush margins for soybeans are poor. There is also talk about rains destroying up to about 250,000 acres of Argentinean soybeans. Weekly export sales were small but came in much better than what was estimated. Weekly export sales were estimated to be between -200-100 TMT and came in at 289.5 TMT.
Weekly ethanol production dropped and weekly export sales were uneventful for corn so prices are on the defensive this morning. Weekly export sales were reported at 716.7 TMT and were estimated to come in between 400-1000 TMT. The corn market is still considering yesterday's USDA report which decreased ending stocks via an increase in exports. However, there is still plenty of corn to meet demand.
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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