SunPrairie Grain Morning Comment
MINOT - Apr 30/14 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 9:00 AM CDT:
Wheat is down 1-4 cents, market corrects lower despite poor results from the winter wheat quality tour (Mpls July 7.58 ¼, KC July 7.99)
Soybeans are 6-10 lower, market needs fresh news to trade higher (July last trade 15.06 ½)
Corn is down 5-7 cents, planting delays have been built in, market focuses on new weather forecasts (July last trade 5.16 ½)
Sunflowers are down 10-15 cents, bean oil falls with soybeans, crude and canola
Canola is 10-15 lower, nearby contracts fall but deferred are a little higher
Just about everything is trading in the red this morning. The US dollar is lower, crude is off about $1.60/barrel and grain futures are falling. Profit taking has hit grains this morning and prices are faltering. A complete lack of fresh, favorable news has grains struggling as well. Continued unrest out of Russia and Ukraine could keep investors on edge and their money in the grain markets, which may help to limit some of today's losses.
The US hard red winter wheat quality tour is not reporting good news, which could help to limit losses in that market. The average yield found yesterday from over 200 fields was the lowest in 13 years at 34.7 bushels per acre. Reports are that the crop is also behind. Yields are expected to get worse as the crop moves south and west.
The soybean market needs fresh news to give prices reason to trade higher. Without that fresh news, soybeans are working their way lower this morning. Yes, US supplies are tight but for now the market seems content with prices where they are at. Also, if imports of South American soybeans continue and Chinese demand remains quiet it would be tough for soybeans to sustain current prices. Canola is trying to hang onto gains this morning and we could see canola futures break away from soybean influence and work their way higher this morning.
Corn futures rallied a bit Tuesday due to planting progress being lower than what the market thought it would be. Also, delays late last week and early this week could keep progress from jumping much in Monday's estimate. However, forecasts are expected to dry out in many production areas which would let planting resume. Don't you love the yo-yo a weather market provides? Good ethanol margins will keep demand for old crop strong.
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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