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3 Big Things Today, December 3, 2019
1. Soybean, Grain Futures Higher in Overnight Trading
Soybeans and grains were higher in overnight trading on a somewhat bullish, yet not unexpected, Crop Progress Report and on reported technical buying.
Some 96% of soybeans were harvested as of Sunday, down from the normal 99% at this point in the year, according to the USDA. Only 96% of Iowa beans were in the bin when farmers would normally be finished harvesting by now.
The corn harvest was even further behind.
Only 89% of the U.S. corn crop was collected, well behind the prior five-year average of 98% for this time of year. The total was up from 84% the previous week.
In Iowa, 92% of the crop was in the bin at the start of the week vs. the normal 99%; in Illinois, 93% was collected vs. the normal 100%, the USDA said.
Prices are being capped by the ongoing trade war between the U.S. and China. With no deal in sight, President Donald Trump has indicated he still plans to raise tariffs on December 15 as planned on more than $150 billion worth of Chinese goods.
Trump told reporters in London that he may delay any deal with China until after the U.S. election next November, insisting China "want(s) to make a deal now" despite Beijing's reluctance to accept any truce that involves tariffs and a hard floor on agricultural purchases.
The Global Times, a Chinese state newspaper, said this week that China is waiting for Washington to remove existing tariffs instead of just planned tariffs. Negotiations also are being complicated by the U.S. stance on Hong Kong.
Soybean futures for January delivery rose 3¢ to $8.73½ a bushel overnight on the Chicago Board of Trade. Soy meal rose $1.30 to $294.80 a short ton, while soybean oil rose 0.1¢ to 30.26¢ a pound.
Corn futures for December delivery rose 1½¢ to $3.83½ a bushel.
Wheat for September delivery gained 4¢ to $5.39¼ a bushel, while Kansas City futures added 5¢ to $4.44¼ a bushel.
2. Weekly Corn, Soybean, Wheat Inspections All Decline Week to Week
Inspections of corn, soybeans, and wheat for overseas delivery all declined week to week, according to the USDA.
Corn assessments fell to 428,856 metric tons in the seven days that ended on November 28, the agency said. That’s down from 615,968 tons the previous week and well behind the 1.06 million tons inspected during the same week in 2018.
Soybean inspections dropped to 1.55 million metric tons, down from 1.95 million tons a week earlier, government data show. The agency examined 1.05 million tons for offshore delivery at this time last year.
Examinations of wheat for offshore delivery declined to 246,988 metric tons last week, down from 434,703 tons and the 475,745 tons assessed during the same week a year earlier.
Since the start of its marketing year on September 1, the USDA has inspected 6.04 million metric tons of corn for overseas delivery. That’s less than half the 14.2 million tons it had assessed during the same period in 2018, the agency said.
Soybean assessments since the start of September now stand at 15.9 million metric tons, ahead of the 13.3 million tons inspected at this time last year.
Wheat inspections since the start of the grain’s marketing year on June 1 were reported at 12.6 million metric tons, up from 10.6 million tons at this point last year, the USDA said.
3. Snow May Fall in Parts of Minnesota, Wisconsin Tonight; Thunderstorms Forecast For Oklahoma
Parts of Minnesota and Wisconsin could see some light snow begin this evening and linger overnight, according to the National Weather Service.
“The snow may mix with or transition to freezing drizzle into Wednesday morning,” the NWS said in a report early this morning. “Up to an inch of new snow will be possible … in northern Wisconsin due to lake-effect snow.”
In the Southern Plains where winter wheat is out of the ground, thunderstorms are expected to start Thursday afternoon across parts of Oklahoma.
The storms aren’t expected to be severe.
Weather maps across much of the Midwest are quiet this morning.