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3 Big Things Today, April 10

Soybeans, Grains Little Changed; USDA Raises Outlook For Corn Stocks, Lowers Beans.

1. Beans, Corn Little Changed as World Awaits Trade Deal

Soybeans and corn were little changed overnight as traders continue to wait for news on trade talks between the U.S. and China.

By all accounts, last week’s meeting in Washington, the latest in a series of negotiations, went well with Chinese Vice Premier Liu He wrapping up his time in the U.S. by meeting President Donald Trump.

Still, very little news has come out of the talks, other than China state-run newspapers reporting that the sides came to some new fundamental understandings on some issues last week. Still, Reuters reported earlier this week that the U.S. is “not satisfied yet” on a proposed deal.

Negotiations, however, are ongoing and both sides seem eager to find common ground.

Soybeans for May delivery fell 1¢ to $8.97¾ a bushel overnight on the Chicago Board of Trade. Soy meal lost 50¢ to $308.60 a short ton, and soy oil declined 0.21¢ to 28.83¢ a pound.

Corn futures gained ¾¢ to $3.60¾ a bushel in Chicago.

Wheat futures for May delivery declined ¼¢ to $4.59¼ a bushel overnight, while Kansas City wheat dropped ¼¢ to $4.27¼ a bushel.

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2. Corn Ending Stocks Outlook Bumped Up Slightly, Bean Inventories Down in Latest WASDE

The USDA released its monthly World Agricultural Supply and Demand Estimates Report yesterday, and there were a few notable changes.

Corn ending stockpiles are now expected to be around 2.035 billion bushels at the end of the 2018-2019 marketing year that ends on August 31, up from the previous projections of 1.835 billion bushels, the government said.

Forecast production this year was left unchanged at 14.42 billion bushels, but the amount used for feed and ethanol declined slightly, as did the outlook for exports. Total use is pegged at 14.565 billion bushels, down from the March forecast for 14.765 billion, the USDA said.

Soybean inventories on August 31, meanwhile are now pegged at 895 million bushels, down slightly from the outlook for 900 million last month.

Production was left unchanged at 4.544 billion bushels, but there was a slight uptick in the amount used for seed and a small decrease in the amount imported that accounted for the change, according to government data.

Wheat inventories at the end of the grain’s marketing year on May 31 is pegged at 1.087 billion bushels, up considerably from the March projection for 1.055 billion bushels.

Production is still seen at 1.884 billion bushels, but the USDA downgraded its outlook for the amount used for animal feed by 10 million bushels and the amount exported by 20 million bushels. Total use is now seen at 2.042 billion bushels, down from last month’s outlook for 2.073 billion bushels, the government said.

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3. Blizzard Will Start as Rainfall Today in Parts of South Dakota, Minnesota, Nebraska

Almost all of South Dakota, western Minnesota, and the western half of Nebraska are still in a blizzard warning as up to 18 inches of snow are expected in some areas, according to the National Weather Service.

Rain is expected to turn to snow this morning in south-central South Dakota, the NWS said in a report early this morning.

“Very heavy snow will continue across the rest of the area today before gradually ending Thursday,” the agency said. “Breezy northerly winds will result in areas of blowing and drifting snow and significantly reduced visibility at times.”

In central South Dakota, 12 to 18 inches of snow is expected along with wind gusts of up to 55 mph, the NWS said.

The storm also will dump snow on much of southwestern Minnesota that will start as rain and sleet this morning. The precipitation will turn to snow starting tonight and continue through Friday morning. Snowfall rates of an inch to 2 inches per hour are possible.

In central Nebraska, 4 to 11 inches of snow are forecast along with 110  inch of ice and 55 mph winds, the NWS said.

“Falling and blowing snow with strong winds and poor visibility are likely,” the agency said. “This will lead to whiteout conditions, making travel extremely dangerous.”

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