3 Big Things Today, April 5
1. Soybeans, Corn Decline in Overnight Trading
Soybeans and corn were lower in overnight trading amid concerns about trade and on some profit-taking after prices rose this week.
President Donald Trump said the U.S. and China are close to a trade deal but wouldn’t give a date for his meeting with Chinese President Xi Jinping, despite what reports had said. He said while the sides are near an agreement, “if it’s not a great deal, we’re not doing it.”
Investors also may be taking some profits overnight after soybean prices rose 22¢ in the four days heading into Friday.
With uncertainty over trade and rising stockpiles, investors don’t want to be too long the market just yet.
Soybeans for May delivery fell 6¼¢ to $9.00¼ a bushel overnight on the Chicago Board of Trade. Soy meal fell $2.90 to $309.10 a short ton, and soy oil added 0.05¢ to 29.25¢ a pound.
Corn futures lost 2¼¢ to $3.63 a bushel in Chicago.
Wheat futures for May delivery declined 6¢ to $4.64¾ a bushel overnight, while Kansas City wheat dropped 6¢ to $4.33½ a bushel.
2. Soybean, Wheat Export Sales Surge Week to Week While Corn Declines
Export sales of soybeans and wheat jumped week to week while corn sales plunged, according to the USDA.
Soybean sales to overseas buyers in the marketing year that ends on August 31 totaled 1.97 million metric tons, up “noticeably” from the previous week and the prior four-week average, the USDA said in a report.
China stepped back in and bought 1.7 million tons of the total, followed by Indonesia, which took 91,500 tons, an unknown buyer bought 65,200 tons, South Korea was in for 59,600 tons, and Taiwan purchased 30,600 tons. Argentina canceled an order for 40,000 tons.
Analysts had pegged sales from 800,000 to 1.8 million, according to researcher Allendale.
Wheat sales also surged, rising 48% week to week to 704,700 metric tons, the government said.
Iraq was the big buyer at 200,000 metric tons, followed by Egypt at 119,500 tons, and Indonesia at 115,000 tons. The Philippines took 70,000 tons and Mexico bought 62,500 tons. An unknown customer canceled a shipment for 28,700 tons.
Net sales in the marketing year that starts on June 1 totaled 312,800 tons as the Philippines and Iraq made large purchases, the USDA said.
Analysts had pegged combined sales of wheat from 300,000 to 800,000 tons.
Corn sales, meanwhile, dropped 41% from the previous week and 31% from the prior four-week average to 537,300 metric tons, the government said.
Japan was the biggest buyer at 258,300 tons, followed by Mexico at 229,900 tons, and Colombia at 114,900 tons. Peru bought 93,800 tons and Honduras purchased 29,4500 tons. An unknown buyer canceled shipments for 215,700 tons.
Sales in the marketing year that starts on September 1 totaled 93,000 tons, all to Japan, the USDA said.
Analysts had pegged combined sales from 700,000 to 1.25 million metric tons, Allendale said.
3. Dense Fog Advisory Issued This Morning From Dakotas to Oklahoma; Flooding Continues
A dense fog advisory is in effect this morning from northern South Dakota south into east Texas, according to the National Weather Service.
Visibility in parts of eastern Oklahoma and western Arkansas is down to less than ¼ mile, the NWS said in a report early this morning.
Much of the fog will dissipate by midmorning. Until then, drivers are advised to slow down and leave distance in front of their vehicle to avoid potential collision.
Flooding is still the main weather issue this morning. Several counties in North Dakota and Minnesota are under a flood warning still. The Missouri River is still over its banks from the Nebraska-Iowa border through central Missouri, the NWS said.
The Mississippi River also is over its banks from Minnesota down to the Gulf of Mexico, according to weather maps. Flooding likely will continue throughout the weekend into next week.