3 Big Things Today, April 26
1. Soybeans Lowers, Grains Little Changed Overnight
Soybeans were slightly lower overnight while grains were little changed.
Prices were mixed amid uncertain weather in the Midwest. Rainfall is expected in many areas, which will delay planting, but improve soil moisture. Planting progress is in question, but once the plants are in the ground, they’ll have plenty to drink.
Trade negotiations between the U.S. and China are scheduled to continue starting next week when a U.S. delegation heads to Beijing, according to the White House.
On May 8, a Chinese group will return to Washington to continue talks.
Negotiators from both countries – the world’s two largest economies – are hoping to wrap up a trade deal next month.
Soybeans for May delivery fell 3½¢ to $8.69¼ a bushel overnight on the Chicago Board of Trade.
Corn futures added 1¢ to $3.58¼ a bushel.
Chicago wheat for May delivery gained 3/4¢ to $4.42¼ a bushel in Chicago while Kansas City wheat rose 1¼¢ to $4.12¾ a bushel.
2. Export Sales of Soybeans, Wheat Rise Week-to-Week While Corn Declines
Export sales of soybeans and wheat rose week-to-week while corn declined, according to the U.S. Department of Agriculture.
Soybean sales in the seven days that ended on April 18 totaled 596,300 metric tons, up 57% from the previous week, but down 15% from the prior four-week average, the USDA said in a report.
An unknown buyer was the biggest customer at 230,700 metric tons, followed by China at 212,100 tons and Japan at 52,200 tons. Peru was in for 21,700 tons and Canada purchased 19,400 tons. For the 2019-2020 marketing year, sales totaled 22,700 tons.
Analysts had expected sales from 300,000 to 750,000 tons, according to researcher Allendale.
Corn sales last week totaled 779,900 metric tons, according to the government. That’s down 18% from the prior week but up 6% from the four-week average.
Japan was the big buyer, taking 349,400 metric tons, Mexico was in for 310,500 tons, Colombia purchased 117,400 tons, Peru took 30,000 tons, and Honduras bought 18,400 tons, the USDA said. An unknown buyer canceled a shipment for 85,800 tons.
Analysts had pegged corn sales from 600,000 to 1.1 million metric tons.
Wheat sales for overseas delivery were reported at 425,300 metric tons, up 34% from the previous week but down 4% from the average.
Mexico bought 160,800 tons, Nigeria was in for 80,900 tons, Mozambique took 52,800 tons, Tanzania purchased 45,000 tons, and the Philippines bought 37,900 tons, the USDA said. Peru canceled a shipment for 37,800 tons.
For the 2019-2020 marketing year, sales totaled 226,200 tons as Algeria bought 90,000 tons, Mexic took 44,000 tons, Japan was in for 30,100 tons, and an unnamed buyer bought 30,000 tons.
Analysts expected total sales from 300,000 to 750,000 tons, Allendale said.
3. Winter Storm Watch in Effect for Parts of Iowa, Minnesota, Wisconsin
Old Man Winter doesn’t seem to want to let go this year.
A winter storm watch is in effect for parts of northeastern Iowa, southeastern Minnesota, and southern Wisconsin, according to the National Weather Service.
“A band of heavy snow is forecast to fall across the area from Saturday morning into Saturday evening,” the NWS said. Snowfall of up to 9 inches is possible with rates from 1 to 2 inches hourly. “If this occurs, a slushy snow accumulation would make travel difficult.”
The agency said knowing when the system will hit is the easy part, but the exact location and snowfall amounts may change.
Farther east in Indiana, a flood advisory is in effect while in the northeastern part of the state into Ohio, a flood warning is in effect, the NWS said.
“Lowland flooding will continue to develop overnight as a result of the 1 to over 2 inches of rain that fell across the basins yesterday and early this morning,” the agency said.