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3 Big Things Today, February 7, 2020

Grains, Beans Little Changed Overnight; Export Sales of Soybeans Jump Week to Week.

1. Crop Futures Little Changed Ahead of Next Week’s WASDE

Grains and beans were little changed in overnight trading as investors look ahead to next week’s World Agricultural Supply and Demand Estimates (WASDE) Report while still keeping an eye on the spread of the coronavirus.

Allendale said it expects the USDA to report corn inventories down to 1.832 million bushels, soybean stockpiles down to 320 million bushels, and wheat stocks lowered to 958 million bushels in its February 11 report.

While declining stockpiles may underpin prices, the spread of the coronavirus and its impact on demand likely will keep a lid on futures.

China now has more than 31,000 confirmed cases and 630 deaths.

In the U.S., 12 cases have been confirmed with zero deaths so far, the Centers For Disease Control and Prevention said. Eight Americans on a cruise ship that’s been quarantined off the coast of Japan also have the disease, according to reports.

Corn futures for March delivery rose 1¢ to $3.80¼ a bushel in overnight trading on the Chicago Board of Trade.

Wheat futures for March delivery fell 1¼¢ to $5.55 a bushel, while Kansas City futures added ¼¢ to $4.68 a bushel.

Soybean futures for March delivery lost ¼¢ to $8.80¾ a bushel. Soy meal futures rose $1.40 to $289.60 a short ton, and soy oil dropped 0.25¢ to 30.99¢ a pound.

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2. Soybeans Sales Jump Week to Week, Corn Little Changed, Wheat Sales Fall

Export sales of soybeans jumped week to week despite China disappearing, while corn was little changed, and wheat sales declined, according to the USDA.

Bean sales in the seven days that ended on January 30 were reported at 703,800 metric tons, up 76% from the prior week and 29% from the previous four-week average, the USDA said in a report.

Analysts had expected sales from 400,000 to 900,000 metric tons, according to Allendale.

Conspicuously absent from the report was China, which wasn’t named as a buyer.

Egypt was the big buyer at 264,400 metric tons, followed by the Netherlands at 205,600 tons, and Taiwan at 116,900 tons, the government said. Germany bought 69,100 tons and Spain purchased 63,6500 tons.

The total would’ve been higher but an unnamed country canceled cargoes totaling 238,800 metric tons.

Corn sales, meanwhile, came in at 1.25 million metric tons, up 1% from the previous week and 57% from the four-week average, the USDA said.

Analysts had pegged sales from 700,000 to 1.45 million metric tons.

Mexico bought 439,400 metric tons, Japan took 234,400 tons, Colombia purchased 147,300 tons, an unknown buyer was in for 145,500 tons, and Trinidad took 95,000 tons, according to the report.

Wheat sales dropped 48% week to week to 338,600 metric tons, which was down 35% from the prior four-week average, the agency said.

Analysts had expected wheat sales from 200,000 to 750,000 metric tons.

The Philippines was the big buyer at 94,300 metric tons, the USDA said. An unnamed buyer took 60,500 metric tons, Mexico was in for 52,100 tons, Nigeria bought 36,000 tons, and Italy purchased 30,000 tons, the agency said.

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3. Winter Weather Lingers in Eastern U.S.; Another Storm Headed For Minnesota, Wisconsin

Winter weather has moved east but continues to stretch from northern Arkansas northeast to the Atlantic Ocean, according to the National Weather Service.

In southern Ohio, a winter weather advisory remains in effect until 10 a.m. local time. An additional inch of snow is expected this morning.

In parts of northern Arkansas and Tennessee, light snow will taper off this morning, the NWS said in a report early this morning.

While the storm that hit much of the Midwest has moved east, another round of winter weather is likely on the way for parts of southern Minnesota, northern Iowa, and central Wisconsin, weather maps show.

A storm starting late Saturday and lasting through Sunday may mean as much as 6 inches of snow, the NWS said.

“Those will travel plans this weekend should play close attention to the latest forecasts,” the agency said. “Be prepared to alter or delay travel if conditions warrant. Those with flexible plans may want to consider consolidating them on Saturday to avoid likely travel impacts Sunday.”

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