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3 Big Things Today, August 6

Grains Lower, Beans Higher Overnight; Export Inspections Fall Week to Week.

1. Grains Lower, Beans Higher in Overnight Trading

Grain futures were lower overnight while soybeans turned higher as investors weigh favorable weather, the ongoing trade war with China, and a host of other factors.

Rainfall is forecast for parts of the northern and eastern Corn Belt today, though how much rain is expected varies from state to state. Precipitation is expected from northern Illinois through Ohio and in the Northern Plains, which could give crops a boost.

That, along with concerns about trade with China, is keeping a lid on prices.

The U.S. officially labeled China a currency manipulator after its government allowed its currency, the yuan, to fall through a politically sensitive level against the dollar on Monday. The move came after President Donald Trump said tariffs on another $300 billion worth of Chinese goods would go into effect on September 1.

Trump said China has failed to live up to promises to buy U.S. agricultural products. As part of the Asian nation’s retaliation to the threats, importers have said they will no longer purchase agricultural items from the U.S. and reportedly may impose tariffs on imports that have been purchased but not yet shipped.

Corn futures for December delivery lost 1½¢ to $4.13¼ a bushel overnight on the Chicago Board of Trade.

Wheat for September delivery fell 3¢ to $4.91½ a bushel, while Kansas City futures dropped 4½¢ to $4.22¼ a bushel.

Soybean futures for November delivery rose 2¢ to $8.70¾ a bushel overnight. Soy meal declined $1.50 to $300.80 a short ton, while soybean oil gained 0.14¢ to 28.40¢ a pound.

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2. Export Inspections Decline Across the Board in Seven Days Through August 1, USDA Says

Inspections of corn, soybeans, and wheat for overseas delivery all declined week to week, according to the USDA.

Corn assessments in the seven days through August 1 totaled 631,289 metric tons, down from 667,669 tons the previous week, the government said in a report. That’s also down from the 1.29 million tons that were inspected during the same week in 2018.

Soybean inspections were lower, falling to 1.03 million metric tons last week from 1.06 million tons the previous week, the agency said. The total was up from the 893,648 tons inspected at the same time last year.

Examinations of wheat for offshore delivery declined to 395,136 metric tons, down from 413,768 tons the previous week, the USDA said. That was still up from the 327,172 tons inspected during the same week last year.

Since the start of the 2018-2019 marketing year on September 1, the USDA has inspected 44.9 million metric tons of corn for overseas delivery. That’s down from the 52.8 million tons assessed during the same period the previous year.

Soybean inspections since the start of September are way down year over year, falling to 41.4 million metric tons from 53.4 million a year earlier, government data show.

Wheat assessments since the start of the grain’s marketing year on June 1, meanwhile, are up to 4.22 million metric tons from 3.38 million at this time in 2018, the USDA said.

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3. Severe Weather Forecast For Parts of Northern Illinois, Indiana, Ohio Today

Hazardous weather is forecast for parts of northern Illinois, northern Indiana, southern Michigan, and parts of Ohio today and tonight, according to the National Weather Service.

Wind gusts of up to 50 mph are predicted along with thunderstorms starting this afternoon, mostly south of Interstate 80, the NWS said in a report early this morning. Heavy rainfall also is a possibility with the storms.

The storms are expected to wane as evening approaches.

More thunderstorms are expected starting again on Wednesday night and extending into Thursday, the agency said.

In the Northern Plains where spring wheat is grown, isolated to strong storms are expected, the NWS said. Parts of North Dakota and northwestern Minnesota likely will see storms, with some bringing quarter-size hail and wind gusts of up to 60 mph, the agency said.  

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