SunPrairie Grain Morning Comment
MINOT - Jun 16/14 - SNS -- Following is the morning comment from SunPrairie Grain, a division of CHS.
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Market Outlook as of 9:05 AM CDT:
Wheat is up 1-4 cents, wheat due for bounce after selling pressure seen over past month or so (Mpls July last trade 6.87, KC July 7.14 ¾)
Soybeans are mixed, old crop higher, new crop lower, not much fresh news, market focuses on crop prospects (July last trade 14.27)
Corn is down 3-5 cents, funds work to liquidate their bought positions, putting selling pressure on futures prices (July last trade 4.44)
Sunflowers are 0-5 cents lower, soybean oil is slightly lower with the soybean and soybean meal futures
Canola is down 5-10 cents, lower soybean complex and good canola planting has futures slightly lower
I thought I'd start the week out with some entertainment. The following was sent to me from CHS Hedging Analyst Brian Rydlund and I thought it was worth passing along...
Came with the caption: "I guess the situation for corn is still bearish.....literally". I love a good pun :)
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Fundamentally there isn't a lot of fresh news to report for the grain futures markets. The unrest in Iraq has the crude market concerned and trading a little higher, but that does not seem to be providing any support to the grains this morning. Ukraine and Russia are having some fresh disagreements as well concerning natural gas and that has the market's attention also. The US weather outlook is pretty good and there is not any heat threat to the US crop that is seen through the end of the month. That being said, crop conditions are expected to remain high and a successful planting season is going down in the books. With a great planting season across the US, coupled with a fantastic start to the growing season, it will be hard for grain futures to want to trade higher unless a major surprise comes out of left field.
Our wheat markets seem due for a little bounce after the pretty awful month we've had. US harvest problems are occurring as the hard red winter wheat areas are now receiving the rains that they were begging for all spring. The weather down there really is not working for the winter wheat crop but I'm sure the freshly planted crops are pretty happy to receive some moisture. Early harvest reports are of low yield and high protein - which makes a lot of sense considering the drought conditions that occurred over the spring. Export demand news is around for US wheat which is encouraging for prices but we'll be wary of increasing competition from the European Union and Black Sea Region.
Soybeans have nothing exciting to write about. The market is likely to see planting pretty well wrapped up and crop conditions at about 75% good to excellent. With those expectations we're seeing lower new crop prices in today's trade. Soybean oil is lower today with canola and soybean futures, which means it could be a pretty uneventful and quiet day for the oilseeds in general.
Funds bought up a bunch of corn contracts and lately they've been working on selling them to liquidate those positions, which is part of the reason corn prices have been going lower. Spurring that selling interest are near ideal crop conditions and a great planting season. We will see little bounces here and there when the market feels oversold, like we did on Friday. The general tone for corn prices at the moment, though, is lower. Corn is expected to see crop conditions reported at about 75% good to excellent as well.
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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