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3 Big Things Today, August 30
1. Soybeans, Corn Rise Overnight as Trade Tensions Ease
Soybeans and corn were higher in overnight trading amid cooling tensions between the U.S. and China.
Gao Feng, a spokesman for China’s Commerce Ministry, reportedly told reporters in Beijing that while the Asian nation has “ample means for retaliation” against increased U.S. tariffs on its goods, the goal should be to prevent further trade-war escalations.
“The most important thing is to create the necessary conditions for continuing negotiations,” Gao said.
China last week announced tariffs on another $75 billion worth of U.S. goods including soybeans, pork, and crude, prompting the U.S. to increase its levies on Chinese goods.
President Donald Trump said at the Group of Seven meeting in France last weekend that Chinese officials had called him saying they wanted to sit down and continue negotiations, but Beijing has said it has no records of the calls.
Still, tensions have eased as both sides have dialed back their rhetoric.
Soybean futures for November delivery rose 7¢ to $8.75½ a bushel overnight on the Chicago Board of Trade. Soymeal gained $1 to $299 a short ton while soybean oil added 0.07¢ to 28.65¢ a pound.
Corn futures for December delivery gained 2½¢ to $3.73¾ a bushel.
Wheat for September delivery lost 5¾¢ to $4.67 a bushel, while Kansas City futures added ¼¢ to $4.01¾ a bushel.
2. New-Crop Corn Sales Surge Week-to-Week While Soybean Sales Drop, USDA Says
New crop sales of corn jumped week-to-week while soybean sales plunged, according to the USDA.
Corn sales for overseas delivery in the 2019-2020 marketing year that starts on September 1 totaled 858,900 metric tons, the government said in a report.
Mexico bought 547,200 metric tons, an unknown customer purchased 83,300 tons, Guatemala took 80,200 tons, Honduras bought 45,100 tons, and El Salvador was in for 37,800 tons, the agency said.
For the 2018-2019 marketing year that ends tomorrow, export sales resulted in a net-reduction of 2,500 metric tons due to cancelations and shifts of cargoes to the new crop year.
Soybean sales, meanwhile, dropped to 353,100 metric tons from 792,600 tons a week earlier, the USDA said.
An unknown buyer took 136,200 metric tons, Mexico was in for 123,000 tons, Egypt bought 50,000 tons, Malaysia purchased 17,000 tons, and Taiwan took 11,000 tons.
Old-crop soybean sales totaled 95,200 metric tons as China bought 76,700 tons, Japan was in for 59,200 tons, South Korea took 56,800 tons, and Taiwan was in for 39,900 tons. An unnamed customer canceled a shipment for 157,700 tons.
Sales of wheat for delivery in the grain’s 2019-2020 year that started on June 1 were reported at 661,700 metric tons, a marketing-year high, the USDA said. The total was up 11% week-to-week and 37% from the prior four-week average.
South Korea was the big buyer at 105,100 metric tons, Mexico took 90,700 tons, an unknown buyer bought 74,800 tons, Japan was in for 69,200 tons, and Nigeria purchased 66,000 tons, the government said in its report.
3. Flood Warnings, Watches in Effect For Much of Central Kansas, North-Central Oklahoma
Flood warnings and watches are in effect for much of central Kansas and north-central Oklahoma this morning as heavy rain will continue to fall in the area, according to the National Weather Service.
“Scattered to numerous thunderstorms will continue to impact the region this morning, especially across central and south-central Kansas,” the NWS said in a report this morning. “Locally heavy rainfall and pockets of flash flooding are possible.”
A flash flood warning along with watches also are in effect in western Missouri as rain will fall on soils that are already saturated from excessive moisture in the region in recent weeks, the agency said in its report.
Thunderstorms also are possible in parts of southern Missouri, southern Illinois, and southern Indiana this afternoon.
Some of the storms may become severe with damaging winds, lightning, and heavy rainfall being the likeliest concerns, the NWS said.
Hurricane Dorian is headed for Florida, Georgia, and the Carolinas with a risk of life-threatening storm surges, “devastating” winds and heavy rainfall that likely will cause flooding. The storm is expected to move across the northwestern Bahamas toward the Florida peninsula this weekend.