SunPrairie Grain Morning Comment
MINOT - May 28/14 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 9:15 AM CDT:
Wheat is down 3-5 cents, lack of buying interest, abundant global supplies (Mpls July last trade 7.16, KC July 7.35 ¼)
Soybeans are -2 to +2, planting progress not as fast as expected but ahead of average pace (July last trade 14.90 ½)
Corn is up 0-2 cents, market needs fresh supportive news planting caught up (July last trade 4.71 ¼)
Sunflowers are unchanged, bean oil is lower, putting pressure on sunflower prices
Canola is down 0-5 cents, futures slightly lower this morning
The US dollar is higher this morning and crude prices are down about 50 cents per barrel. There is not a lot of fresh news for the grain futures markets to trade off of this morning and so prices are focusing on near perfect crop development weather. Futures will remain very much in a weather market through the key crop development stages.
Ample global supply coupled with a lack of fresh news and buying interest has wheat prices steadily drifting lower this morning. Recent price declines and poor hard red winter wheat conditions are not enough to keep prices supported this morning. Winter wheat crop conditions increased to 30% good to excellent this week, which is up 1%. Texas harvest is underway with early reports of high protein and yields of 10-12 bushels per acre...sounds like a drought impacted crop to me. The market will be waiting to hear further updates on conditions. China is reportedly in the midst of harvesting what looks like a bumper crop. Spring wheat planting made good progress over the week, jumping to 74% done, 8% behind average pace. ND spring wheat planting is 59% done, 14% behind average pace and a 34% increase from last week's number. Barley planting is 84% complete across top producing states which is ahead of the five year average pace of 82%. ND barley is 56% planted, compared to last week's 22% number.
Soybean futures rose in the overnight session due to planting numbers being behind what was estimated. However, as this morning's session progresses futures are relaxing as the pace is still ahead of average. Overall soybeans are 59% planted compared to a 56% average and 33% reported last week. ND soybeans are 31% planted, behind the five year average pace of 45%. Progress was pretty good this week, though, as only 5% of ND's soybeans were planted last week. There are further reports of South American soybeans coming to the US which could slightly be weighing on prices.
Sunflowers could be a bit lower this morning as soybean oil falls with crude, canola and new crop soybean prices. Planting is 12% done, which is behind the five year average of 18% complete. ND sunflowers are 13% planted which is 10% behind the five year average. However, good progress is expected again this week as there has not been much rain to slow things down.
Corn futures are bouncing around both sides of unchanged. There's a lack of fresh supportive news to drive corn prices higher and planting progress is caught up to the average pace. Emergence is coming along pretty well as temperatures are pretty warm and humid, helping crop development. Weather has really been pretty ideal for corn so far this year and the market will continue to focus on this summer's forecasts. Planting is 88% complete and ND corn is 67% planted which is only 8% behind the five year average. ND has made some good progress over the week considering how far behind we were just a couple weeks ago.
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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