SunPrairie Grain Morning Comment
MINOT - Jun 6/14 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 8:30 AM CDT:
Wheat is up 3-9 cents, winter wheat gains on harvest delays, pulls spring wheat futures along for the ride. Markets could use a correction. (Mpls July last trade 6.95 ¼, KC July 7.24 ½)
Corn is 3-5 higher, following wheat prices, ideas futures have been sold off pretty heavily this week spurs buying interest (July last trade 4.52 ¾)
Soybeans are up 2-4 cents, market knows a big crop is coming, gains are limited (July last trade 14.63 ¼)
Sunflowers are up 5-10 cents, bean oil slightly higher with rise in soybean futures, stronger crude and canola prices help
Canola is mixed, new crop prices lower but old crop prices higher
*Delayed Price*
We are currently offering FREE DP on new spring wheat and winter wheat deliveries, with grain to be priced by August 10th, 2014. Sunflowers currently have DP of 12 cents/month until July 31, 2014. Corn and soybeans are cash only. As always, DP is dependent on space available.
Texting Service & SRT
There is a problem with the SRT server which is resulting in our grain marketing texts not being sent out to those of you who subscribe and use SRT as a carrier. DTN and SRT are working to solve the problem and we hope that it will be up and running shortly. For those of you who are not familiar with our texting service we send out our cash bids, reflective of changes in futures prices, three times daily. The only charge for cash bid texting is what your service provider charges based on your texting plan. If you're interested in signing up for our text messaging service please call Wendy Eggert or myself at our Minot office.
Grain markets finished the overnight session a bit higher, finding some buying interest after this past week's losses. There is little fresh news globally or domestically to provide price direction, which might be a good thing because it's allowing the grain futures to breathe and find some buying to help boost prices a little bit. The US dollar is higher this morning and crude prices are up about 45 cents/barrel.
Early hard red winter wheat harvest is being delayed in areas by recent rainfall. Some are wondering if crop quality was damaged at all by the wet weather but most are considering the rain a blessing as it has been extremely dry in most of the hard red winter wheat belt. Additionally, wet weather will help boost soil conditions for other crops in those areas and it seems that the HRW crop has been written off by many due to drought anyway. Also helping winter wheat prices in general this morning are reductions in production estimates from Informa Economics, a private market analyst. Despite the rains, global supplies remain quite ample and export demand is fairly quiet for US wheat. So even though we're finding some higher prices this morning, prices fundamentally are going to need some solid favorable news to get them trading higher.
A large soybean crop is looming over the marketplace and limiting soybean gains this morning. After hefty losses yesterday, though, it's nice to see a little bit of a recovery to soybean futures today. Good crop development weather and strong planting numbers are just weighing on this market right now. Also, soybean meal prices have been relaxing and after bean meal prices helped pull soybeans up earlier this year, they're now helping prices fall down. The soybean market seems subject to fairly heavy selling pressure followed by mildly higher prices, making the overall tone for the market lower for right now. Argentinean harvest is about 80% complete, behind the pace of last year, which explains why a smaller percentage of the crop is sold this year over last year.
Funds hold a net long position in the corn market...this means they have bought up corn futures. What funds have bought they must at some point sell...so this makes corn susceptible to even lower prices and additional selling pressure. Favorable weather and high crop ratings keep prices from rising too much. However, good wheat gains this morning let corn recoup some of yesterday's losses. China sold some corn from its state reserves, which may limit demand as buyers go domestically for what they need.
Have a great weekend!
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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